Derivatives Advisory Services, continued

Analysis. Understanding costs, payments, possible future liabilities and risks is important to any organization. Further, derivatives transactions often have tax, legal, or accounting implications. We understand the multiple aspects of derivatives and prepare comprehensive reports that include quantification of risks so that informed decisions can be made.

Structuring and Risk Management. There are often multiple solutions to any given problem and we provide explanations of costs and benefits of each. For example, a variable rate loan can be hedged with both a swap and a cap, which will perform differently under different interest rate scenarios, and each has different explicit and implicit costs.

Execution. Most organizations want to obtain pricing that comes with competitive bidding, but also want the flexibility to reward dealers and banks for bringing innovative proposals and for maintaining relationships in other areas. We provide full pricing transparency whether a deal is bid or negotiated and we have our interests firmly aligned with our clients when negotiating with dealers. Further, we can provide access to derivative markets in specific areas such as raw materials or ocean freight.

For more information, please contact Johan Grahs.