Interest rate cap execution checklist

U.S. bank regulators are asking banks to discontinue offering LIBOR-indexed loans and hedges (including caps and swaps) by the end of 2021. Borrowers may no longer be able to purchase/extend LIBOR caps they otherwise would have to extend beyond 2021. Freddie Mac is asking its Optigo lenders to...

These hairy chart graphs plot past LIBOR forward curves against the actual path LIBOR followed, showing that the forward curve has been a somewhat accurate predictor over the next six months or so...

Mergers and acquisitions involve a multitude of complexities and risks. Speed and accuracy at every stage of an acquisition is critical to not only winning the deal but also giving the transaction the best chance of financial and strategic success. Financial risk associated with the valuation of...

Many loans and derivatives are now in the process of being transitioned to SONIA, and there is a clearer pathway; with prior issues and obstacles being addressed. This piece presents the current position in the market and provides a pragmatic solution for borrowers who may not need, or want to,...

A brief update on the EUR, SEK, and GBP interest rate conditions, putting the recent year-to-date movements into the context of the last 12 months.

Understanding the tactical steps involved in executing on an interest rate cap can help CRE investors plan and use their time efficiently prior to closing on a loan. Request your interest rate cap execution checklist here.

There is emerging evidence that the way the housing association sector hedges its interest risk will change in the coming year. Currently, most are able to fix the debt through an embedded swap (a fixed-rate loan or “FRL”). FRLs account for the majority of fixed-rate borrowing for most small to...

A series of government bond selloffs have jolted financial markets since the start of 2021. In the UK, one consequence is a sharp rise in the cost of hedging GBP interest rate exposures. Having started the year at 0.08%, the five-year swap rate on 3-month GBP LIBOR hit 0.52% at the end of...