Why transfer an interest rate swap?
Under certain circumstances, borrowers may find it necessary to assign or transfer an interest rate swap. For example, a bank may want to charge a client an unreasonable cost to terminate a swap. In this case, the best course of action may be to transfer the interest rate swap from one bank to another. Another reason to transfer an interest rate swap arises when a borrower is refinancing a loan, and simply needs to move the interest rate swap to the new bank. In each case, the value of the interest rate swap must be determined and terms must be negotiated.
DerivGroup’s Expertise in Interest Rate Swap Transfers
When interest rate swap terms are changed, an opportunity arises for a bank to profit from these changes. Any changes in terms can and should be negotiated, along with the value of any payments the borrower is required make. When you are negotiating with your bank on the interest rate swap value, DerivGroup’s expertise can save thousands of dollars by exposing any hidden profits. In addition to arranging the most favorable terms for hedge’s assignment or transfer, DerivGroup also offers a full range of accounting services needed because of any changes made to the hedge.
Contact DerivGroup today how we can assist you in assigning or transferring your interest rate swap.
DerivGroup is an independent financial advisor serving the corporate, non-profit, tax-exempt and municipal debt markets. DerivGroup helps implement the right hedge structure for you, at the right price, with the best terms.