Financial Institutions Case Study: Asset Liability Management

Financial Institutions Case Study: Asset Liability Management
Our Client:
A regional bank with a newly issued brokered CD portfolio.
Situation:
Our client was asset-sensitive and had just issued 5yr brokered CDs that paid a fixed rate of interest. The client lends to borrowers at a floating rate of interest plus a credit spread, with a


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Real Estate Case Study: Debt Ratio

Real Estate Case Study: Debt Ratio
Our Client:
A public real estate company specializing in asset management in the hospitality sector.
Situation:
Our client had paid down a significant portion of their floating rate line of credit, leaving them with a fixed/floating rate debt ratio higher than they desired. With hotel assets essentially re-pricing daily,


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Private Equity Case Study: Emerging Markets

Private Equity Case Study: Emerging Markets
Our Client:
A large private equity firm contemplating an emerging markets acquisition.
Situation:
A private equity fund was in a competitive bid situation to acquire a retail store chain in Eastern Europe. While the deal appeared attractive in local currency, it was uncertain when translated in USD. In addition,


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Corporate Case Study: Tracking & Reporting for Hedges

Corporate Case Study: Tracking & Reporting for Hedges
Our Client:
A global musical instruments manufacturer and distributor who actively manages FX and interest rate risk exposures.
Situation:
The company was managing over 1,500 derivative instruments in Excel and was applying hedge accounting for more than half of their derivatives portfolio. They were applying a


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Derivatives Regulation Case Study: Clearing Selection

Derivatives Regulation Case Study: Clearing Selection
Our Client:
A regional bank that uses derivatives for asset-liability management and offers hedges to its customers in connection with variable-rate loans.
Situation:
The client, who will be required to centrally clear certain derivatives transactions, hired Chatham to evaluate and help in the selection of futures commission merchants (FCMs),


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Private Equity Case Study: Currency Challenges

Private Equity Case Study: Currency Challenges
Our Client:
A large private equity firm executing an acquisition in a developed economy.
Situation:
A private equity consortium had agreed to acquire a North American company. Due to the state of debt capital markets, a substantial portion of the debt capital structure was denominated in USD with floating


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Corporate Case Study: Interest Expense & Currency Risk

Corporate Case Study: Interest Expense & Currency Risk
Our Client:
A software firm with contracts in multiple currencies, a complicated legal structure and unique debt structures.
Situation:
The company had recently increased leverage from a negligible amount to roughly 50% of its enterprise value in a recapitalization, compounding the currency risk. The company was trying


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Real Estate Case Study: Mezzanine Debt

Real Estate Case Study: Mezzanine Debt
Our Client:
A nationwide owner of hotels.
Situation:
Our client’s hotel portfolio was leveraged with a number of long-term low fixed interest rate loans. Since the origination of the original first mortgage debt, increases in operational efficiency for the portfolio resulted in improved portfolio cash flow. Our client’s desire


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Private Equity Case Study: Add-on Acquisition

Private Equity Case Study: Add-on Acquisition
Our Client:
A large private equity firm completing an add-on acquisition for one of its portfolio companies.
Situation:
A portfolio company acquired a public firm via a refinancing of its existing debt, contingent on a shareholder vote scheduled to take place several months in the future. The target company


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Corporate Case Study: Strategy & Accounting

Corporate Case Study: Strategy & Accounting
Our Client:
A global packaging and manufacturing company with over $7 billion in revenues and a complex capital structure.
Situation:
The company had recently issued fixed rate financing and was considering converting it to variable via a pay-variable, receive-fixed interest rate swap. Management’s objective was to achieve


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