Interest Rate Swaps & Caps
Consulting Service
Not Sure Where to Start or Who to Trust?
Interest rate swaps are offered by most banks as part of commercial loan financing. A swap changes an adjustable rate loan into a fixed rate loan. It can help to minimize your interest rate risk and reduce your costs.
For over 20 years we’ve helped clients choose and negotiate the best interest rate swaps and caps for their loans. We’ll save you money on your loan interest payments while preserving your important relationship with your bank and avoiding costly mistakes. Our consultants provide rate and price quotes, help with contracts and agreements, and ensure you get the right interest rate protection for your loan.
Contact us today, and we’ll be happy to answer all your questions about interest rate swaps & caps for your loan.
Clients
Our Complete Interest Rate Hedging Service
Unique to our industry, our interest rate swap consultants operate as your trusted advisor from the initial consultation through the full lifetime of your loan.
Strategy
What’s best for your unique situation… an interest rate swap or an interest rate cap? What portion of the loan should you hedge? How long should you hedge? Should you use more than one kind of hedge? We’ve seen it all, and we’ll help you decide on the best path for your loan and business needs, saving you from costly long-term mistakes. Think of it as interest rate insurance for your loan.
Negotiation
We’ll help you negotiate the interest rate swap pricing and terms for you, pursuing quotes from multiple banks and getting them to compete for your benefit. We do this while being keenly aware of your relationship with your bank.
Ongoing Financial Planning
Each quarter for the lifetime of your loan we will provide you with a review of your interest rate hedge performance. You’ll be able to see your loan valuation and cost savings over time, and we’ll help you determine if it may make sense to restructure or terminate your swap or cap, and how to save money in the process. If you need to terminate a swap, we can also help with that.
Vic Adams, Managing Partner
Experience and Expertise You Can Trust
DerivGroup is headed by Managing Partner Victor Adams, who has worked in the interest rate swaps market for over 30 years in senior trading, marketing, technology and consulting positions for the top US banks.
He founded DerivGroup to provide borrowers with simple, jargon-free, trusted advice to clients large and small.
Vic speaks frequently at seminars and conferences about the use of swaps in all manner of financings. He holds a BA from the University of Chicago and an MBA from Northwestern University’s Kellogg Graduate School of Management.
Case Studies
Hedge Strategy Analysis
A client had just replaced their syndicated bank loan with a new loan having a lower LIBOR rate. The client had executed a swap on their previous loan, which was still outstanding. Unlike the loan it replaced, the new loan had a minimum LIBOR rate (floor), which made the client’s current swap potentially ineligible for…
Interest Rate Swap Execution
A client was refinancing an $8 million bank loan on a commercial property. He had a new LIBOR-based loan proposal from his current bank, and he was also considering a fixed-rate loan through a CMBS program (commercial mortgage-backed security). The new loan proposal also offered him a…
Favorable Swap Termination
A client came to us wanting to terminate a swap. They had executed a reverse swap (receiving a fixed-rate) to convert a fixed-rate private placement bond into a variable rate. The client was now paying off the bond and needed to terminate the swap. It had been several years since they had executed the swap and because interest rates…
Read Full Case Study
Testimonials
Get Help Today
Find out how much you can save on your loan with the right interest rate swap or interest rate cap strategy.
Our advisors will help you find the interest rate protection and peace of mind you’re looking for
and will be happy to answer all your questions.