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Guide

Building a customer back-to-back swap program

  • Authors

    Chris Funck

    Director
    Product Manager

    Financial Institutions | Kennett Square, PA

Summary

Help commercial customers make informed financing decisions by offering market-based, flexible, and transparent fixed rate solutions.

Turn-key advisory and technology platform

Chatham’s back-to-back solution, RateManager, helps community and regional financial institutions win profitable long-term fixed rate deals, grow revenue through product line diversification, and build stronger customer relationships.

Technology

Enterprise-class software built to meet the needs of the most demanding financial institution.

  • Price and originate deals
  • Service portfolio
  • Manage risk and compliance

Scale

Efficiency regardless of deal volume, from one trade to hundreds of trades.

  • Pricing transparency grounded in hundreds of thousands of market-tested indications and valuations
  • Service even the largest borrower swap portfolio within minutes each month

Advisory

One team dedicated to helping your financial institution and your customers succeed.

  • Dealer and borrower-facing swap desk
  • Seasoned capital markets trading desk
  • Deep regulatory and legal advisory bench
  • Staff of hedge accounting professionals

Control and compliance

Best in class controls, data quality infrastructure, and risk management automation.
  • Market-tested trading controls and processes
  • Built-in Dodd-Frank compliance
  • Streamlined risk reporting and audit deliverables

Chatham's technology

Success with a customer back-to-back swap program

Chatham works with over 190 financial institutions of all sizes to help launch, run, and grow successful customer back-to-back swap programs. We offer a platform where all participants can succeed through the combination of best practices, client feedback, and industry-wide collaboration. We deliver the knowledge and know-how to help our clients make the next move and benefit each step of the way.

Keys to program success:

  • Defined program strategy, institutional alignment, and execution
  • Responsive and scalable product infrastructure
  • Efficient delivery and servicing at any scale
  • Practical risk management and compliance framework

Chatham's support along the way:

Efficiency regardless of deal volume, from one trade to hundreds of trades.

  • Assess if a back-to-back program is a fit for your
    financial institution
  • Launch and build your program
  • Grow, optimize, and scale your existing program
  • Explore alternatives to back-to-back swaps

Are you looking to get started?

Get in contact with a Chatham advisor today.

About the author

  • Chris Funck

    Director
    Product Manager

    Financial Institutions | Kennett Square, PA


Disclaimers

Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit chathamfinancial.com/legal-notices.

Transactions in over-the-counter derivatives (or “swaps”) have significant risks, including, but not limited to, substantial risk of loss. You should consult your own business, legal, tax and accounting advisers with respect to proposed swap transaction and you should refrain from entering into any swap transaction unless you have fully understood the terms and risks of the transaction, including the extent of your potential risk of loss. This material has been prepared by a sales or trading employee or agent of Chatham Hedging Advisors and could be deemed a solicitation for entering into a derivatives transaction. This material is not a research report prepared by Chatham Hedging Advisors. If you are not an experienced user of the derivatives markets, capable of making independent trading decisions, then you should not rely solely on this communication in making trading decisions. All rights reserved.

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