Analysis

FMS is built upon interest-rate models that Chatham has developed and is based on nearly 20 years of experience in the debt and derivative markets. From our offices around the world, teams of analysts, developers, and mathematical engineers ensure that market rate information and forecasting capabilities within FMS properly support our client’s unique debt portfolios.

• Interest-Rate Modeling – you can utilize Chatham’s interest rate modeling to forecast interest expense for your floating-rate debt
• Interest-Rate Hedges –you can see the impact of interest-rate hedges on actual and projected debt cash flows
• Sensitivity Analysis – you can “shock” interest-rate curves up or down and quickly see how changes in the interest-rate environment impact your projected debt and derivative cash flows
• Prepayment and Defeasance Calculators – you can choose a date for possible prepayment or defeasance of a particular debt instrument, and FMS will estimate prepayment or defeasance costs given current market-rate information

The power of a database is clear when it comes to analysis. What can take hours or days to pull together can take just minutes of running different report scenarios. What is my lender exposure? What is my fixed/floating mix? What loan terms do I have with my lenders? These are questions that are easily answered by running reports out of FMS.

Budgeting can be a painful process if done through excel. Through FMS, it takes only a couple minutes to run your mandatory principal payments and interest expense projections for the coming year.

FMS connects the accuracy of detailed debt modeling with robust interest-rate modeling for fast and accurate debt portfolio analysis

Reduction of Risks
In today’s Sarbanes-Oxley world, clients can significantly improve controls over debt portfolio management and reporting by moving their data out of spreadsheets and into controlled database environments. Large spreadsheet configurations involving linking, copy/pasting, complex cell formula calculations, and formatting not only require time but are also subject to human error. FMS can reduce such risks and help to prevent financial misstatements or even faulty debt decisions based on miscalculations.

Through FMS, you can check and verify debt information through an independent and dependable source. Month-end reports can be created to compare interest rates and amortization to bank statements amounts; you can ensure you are paying the correct amounts to your lenders.

FMS contains a date reminder system that allows you to set up email reminders for various key dates related to your debt. For example, you can track and send reminders to your email inbox for maturity dates, extension notification dates, prepayment lockout dates, and any custom dates you wish to set up. You can substantially reduce risks associated with missing critical dates.

With covenants stored in a central location, you can minimize the risk of forgetting key or unique covenant and reporting requirements.

FMS gives you confidence that you have the information you need to manage the risks of your debt portfolio