Insights

In this video hear what interest rate swap exposure is and the relevance to the loan underwriting.

Interest rates in Europe have been on a downward pathway since the end of 2018, accelerated recently by the monetary stimulus launched to deal with the economic fallout from global lockdown.

Read a recent case study for one of our infrastructure clients, looking to hedge their interest rate exposure via a 35-year interest rate swap.

A recent example of deal-contingent hedging for a large European private equity fund.

A recent example of an optimal hedging strategy for a large European private equity fund looking to refinance one of its assets.

A recent example of how we successfully advised a European financial sponsor on terminating an existing debt hedge at exit.

Chatham advised Connect Plus on the refinancing of the M25 motorway, the largest infrastructure refinance in the UK since 2015.

Chatham worked alongside a group of sponsors and their financial adviser to define an optimal hedging strategy for new debt, as well as managing the existing hedges.

Chatham was advising the largest UK PPP infrastructure project in 2019, connecting the London Blackwall Tunnel to the Royal Docks industrial area.

A case study on how Chatham advised a EUR1B road project with four debt providers on optimal hedging solutions.

Learn how to help your commercial customers understand why an interest rate swap makes sense.

Hedge accounting can be challenging to “get right” and tough to apply, so designing an effective hedging strategy and achieving the intended results is important for financial institutions.

As rates fall dramatically, many borrowers consider the possible benefits of refinancing fixed-rate loans.

An interest rate swaption is an option that provides the borrower with the right but not the obligation to enter into an interest rate swap on an agreed date(s) in the future on terms protected by the swaption.

An interest rate swap and floor is a combination of an interest rate swap with the purchase of an interest rate floor.

A participating interest rate swap is a derivative instrument that combines an interest rate swap with an interest rate cap. A portion of the debt is hedged with a swap and the remainder with a cap.

A cancellable swap is a combination of an interest rate swap and a receiver’s swaption that may be cancelled by the borrower at no cost on an agreed future date.

An interest rate collar is an option used to hedge exposure to interest rate moves. It protects a borrower against rising rates and establishes a floor on declining rates through the purchase of an interest rate cap and the simultaneous sale of an interest rate floor.

An FX collar involves buying a cap and selling a floor on the same currencies with the same expiration date. The two options set the upper and lower strike prices.

Interest rate caps are purchased to hedge floating-rate loans every business day. Cap pricing is driven by economic factors including the notional hedged, term, strike rate, forward curve, and volatility of the underlying index.

A case study of how Chatham advised a UK REIT how to optimise its hedging strategy, when substituting an existing loan.

A borrower swap program is a tool to help banks compete for long-term, fixed-rate loans. Success starts with identifying goals, deciding how to resource, and building the program.

Chatham is delighted to announce its advisory role for the Windsor Detroit Bridge Authority (WDBA) on the Gordie Howe international bridge project.