Entries by Advisors

Swaps are Back

We have noticed an increase in bank balance sheet financing of late.  Typically, bank loans are indexed to a variable rate (e.g. LIBOR) plus a credit spread. In offering the financing, the banks may require that the borrower enter into a pay-fixed interest rate swap. There are a lot of misconceptions and negativity associated with […]

Rates to Trade Range-Bound Amid Bumpy Recovery

Last Week: Interest rates fell, and equities rose amid signs that most major economies in the world likely hit bottom in April. The yield on the US 10-year note ticked up 3 basis points from a week ago to 0.73% – near the midpoint of its 13-basis-point range – while 1-month LIBOR fell very slightly […]