Offer borrowers a fixed rate without taking on the interest rate risk
Many banks find it challenging to meet their commercial borrowers’ demands for long-dated, fixed-rate loans without violating their own lending policies. Yet they risk losing these clients to larger financial institutions offering synthetically fixed-rate loans comprised of a floating rate loan and an interest rate swap. With rates hovering at historic lows since the 2008 financial crisis, many banks are seeking alternative fee income sources to offset low net interest margins.
RateManager – Chatham’s borrower swap solution
Chatham Financial’s RateManager suite of solutions offers banks a white-label, turnkey borrower swap program that is an attractive source of fee income. RateManager combines Chatham’s highly regarded client advisory services with ChathamDirect, Chatham’s underlying proprietary SaaS (Software as a Service) technology platform. RateManager is available in three configurations that are designed to meet the needs of first-time as well as ongoing borrower swap programs.
RateManager plus makes it easy for banks that launching a borrower swap program for the first time as well as those looking to accelerate a swap program that is still short of its growth objectives.
RateManager plus provides the bank’s treasury group, loan officers, and back office operations with full access to Chatham’s swaps trading desk and ChathamDirect. Some of the key features offered are:
- Swap marketing and sales support
- Pre-trade indications management
- Trade execution and management
- Payment notice generation and distribution
- ACH for swap payment management
- Collateral management
- Accounting and CVAs
Many of Chatham’s new RateManager clients, regardless of their past experience with borrower swap programs, start with RateManager plus for a limited time to ensure a solid implementation, launch and ramp-up of the program. Conversion to RateManager core is as simple as the bank notifying us and taking over day-to-day responsibility for swap desk support.
RateManager core is RateManager plus without Chatham’s swap marketing and sales support. Clients typically remain with RateManager core until the point at which they wish to build an internal capital markets function. That is when they look to Chatham to provide a fully outsourced technology SaaS solution to run their borrower swaps program.
RateManager platform is the ideal technology solution for banks looking to bring all derivatives operations in-house. Migrating from RateManager core to RateManager platform is simple and straightforward, with Chatham handing derivatives trading and back office duties over to the bank and training the middle and back office staff in how to take over full operation of the ChathamDirect technology. RateManager platform is a highly attractive technology solution that reduces switchover costs, frustrating data conversions, and operational disruptions.
The RateManager suite of products is designed to get a bank up and running with a borrower swap program, grow that program successfully over time, and ultimately hand all operational duties for the program to the bank for continued growth and success.