Interest Rate Swaps

Interest Rate Swaps

Not Sure Where to Start or Who to Trust?

Interest rate swaps are offered by many banks as part of commercial loan financing. A swap changes an adjustable rate loan into a fixed rate loan. A swap can 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 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.

Contact us today to get started!

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Clients

Corporations and Partnerships, Real Estate Investment Trusts (REITs), State, County and City Governments, and Local Authorities, Not-for-Profit Organizations, Revenue Authorities, School Districts, Colleges, and Universities,Tribal Nations.
$2,250,000,000 LIBOR
Hedge Program
Landmark
$240,000,000 Swap
Amendment
New
LIBOR Hedge Program
Accounting Services
Topps
$80,000,000 LIBOR
Hedge Program
Tanger Outlets
$2,250,000,000 LIBOR
Hedge Program
High Point University
$240,000,000 Swap
Amendment
Asurion
LIBOR Hedge Program
Accounting Services
Westwood One
$80,000,000 LIBOR
Hedge Program
Sorenson Communications
$2,250,000,000 LIBOR
Hedge Program
Perry Ellis
$240,000,000 Swap
Amendment
Apollo
LIBOR Hedge Program
Accounting Services
Alliance Healthcare
$80,000,000 LIBOR
Hedge Program
Sonic Automotive
$2,250,000,000 LIBOR
Hedge Program
University of Georgia
$240,000,000 Swap
Amendment
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Strategy
Part 1:

Strategy

Which is best for your unique situation – an interest rate swap or an interest rate cap? What portion of the loan should be hedged? What duration hedge should be used? Should multiple hedges be used? We’ve seen it all, and we will help you quickly decide on the best path for your loan and business needs, saving you from costly long-term mistakes.

Our strategy advice will typically save you 0.30% to 1.50% on your interest cost.
Negotiation
Part 2:

Negotiation

We negotiate the interest rate hedge terms for you, pursuing quotes from multiple banks and getting them to compete for your benefit. And we do this while being keenly aware of the need to preserve your good relationship with your existing bank.

Our negotiation process will typically save you between 2 and 10 times our fee.
Ongoing Financial Planning
Part 3:

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 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.

Experience and Expertise You Can Trust

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 and technology positions for the top three US banks.

Vic helps borrowers obtain the best and most cost-effective interest rate hedges for their needs. He provides simple, jargon-free, trusted expertise to clients for loans of all sizes, large and small.

Vic speaks frequently at seminars and conferences about the use of derivatives in taxable and tax-exempt 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
Case Study

Hedge Strategy Analysis

Client Saved $2.5M to $5M by switching from a floored-swap to a cap

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…

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Interest Rate Swap Execution
Case Study

Interest Rate Swap Execution

Client Saved $405,750 (5% of Loan Value) on an $8M Loan

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…

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Favorable Swap Termination
Case Study

Favorable Swap Termination

Client Saved $280,000 over initial bank quote

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…

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Testimonials

DerivGroup helped us negotiate a lower termination payment, saving us over $100,000 when we refinanced our office park.
John C.
Commercial Real Estate Investor, Raleigh, NC
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DerivGroup has been an invaluable asset to our finance team. Their expertise helps us secure good terms while maximizing our banking relationships.
Virginia Summerell
VP Treasurer, Tanger Factory Outlet Centers
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Ever since we executed our first swap, DerivGroup has been our ‘go-to’ group for derivatives. They helped us design our program and negotiate with our banks.
VP of Financial Affairs, High Point University
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Get Help Today

Get Help Today

Find out how much you can save on your loan with the right interest rate swap or interest rate cap strategy.

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DerivGroup