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.
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Clients
Our Complete Interest Rate Hedging Service
Unique to our industry, we operate as your trusted advisor from the initial consultation through the full lifetime of your loan.
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.
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.
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.
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
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…
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Testimonials
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Find out how much you can save on your loan with the right interest rate swap or interest rate cap strategy.