Interest rate risk management

Access unparalleled derivatives market insights to achieve the best pricing

When it comes to interest rate hedging, identifying the right strategy, achieving efficient pricing, and maintaining compliance can pose a serious challenge — especially if you don't hedge frequently. When factoring in the increased credit needs and higher trading cost sensitivity associated with larger trades, achieving price and process efficiency matters even more. That's why so many treasury teams partner with Chatham to inform their strategies and bolster their tactical capabilities.

As the largest independent financial risk management advisory and technology firm, executing over $2.9 billion in notional every day and negotiating over 3,000 ISDAs annually, Chatham offers the unmatched perspective that comes from managing the highest volumes and largest breadth of engagements in our field. This insight gives you an edge in benchmarking against your peers, designing optimal hedging programs, and maintaining strong bank relationships without overpaying for your transactions.

With Chatham, you can access all the strategic, operational, and technological capabilities required to manage an effective interest rate hedging program, including:

• Operationalize a cost-effective risk management program.
• Gain insights into your global risk profile.
• Reduce earnings volatility.
• Ensure effective hedge accounting.
• Adopt a risk policy that meets the needs of your organization.

Pre-trade

• Analytic support: Achieve your economic and accounting objectives with analytic support to inform strategic decisions and ensure optimal trade structure.
• ISDA negotiation: Ensure fair-market terms and adhere to ISDA protocols in a fraction of the time required by external counsel or internal resources.
• Loan documentation review: Confirm trade economics match debt (i.e., floor in debt, rounding conventions, business days).

Execution management

• Peer benchmarking: Avoid hidden mark-ups by ensuring your derivative pricing and counterparty credit charges are transparent and appropriate.
• Competitive auctions: Drive competitive pricing with an independent auction. Chatham can structure and execute a competitive auction that protects relationships with your lender banks.
• Negotiations: Ensure fair-market pricing when competitive auctions are not warranted.

Post trade

• Transaction summary and trade confirmation review, including support for payment or trade structure dispute resolution.
• Web-based trade valuations, trade history, and document repository.

Included services

• Wholesale-level price transparency.
• ISDA and Regulatory Support.
• Debt/hedge structuring to optimize for economics and accounting.
• Counterparty and execution process management.
• Post-trade middle and back office.
• Valuations, accounting, and reporting.