DL Report

DL Report is our monthly white-paper level publication on issues around hedging and derivatives. Subscribers receive notifications to the publications. Our weekly newsletter, DL Monitor, presents more momentary insights on dynamics.

How to Dissect a Fixed Rate

Not all Fixed Rates are the Same We are often asked if a fixed rate quoted by a bank is competitive.  Seems like a simple question, but in practice, it’s a difficult one to answer without proper analysis.  Numerous factors determine how a lender arrives at a fixed rate.  In this month’s report, we will […]

Hedging with a Rate Cap or Swap? Buyer Beware

There are many ways to avoid some of the pitfalls when buying a product or service.  Reviews can be helpful, especially when taking into account the number of customer ratings. Imagine a common scenario: While searching for a particular product on the web, a site advertises the item at a price well below the market […]

LIBOR Replaced By SOFR – So Far, So Good?

Lenders and borrowers: the “haves” and the “have-nots”. Their actions have shaped the history of the world, and how they respond to crisis and change is fascinating and informative.  Fixed rates are prudent and certain, but cash flow can be king.  When current monthly payments matter more than later ones, borrowers often elect to float […]

The ISDA Agreement: Borrower Beware

The ISDA agreement –  the seemingly incomprehensible document that governs most interest rate hedges  – has just been delivered to your inbox by your friendly banker. You’re in the midst of a floating rate financing negotiation with the bank that involves entering into a interest rate swap to hedge the floating rate risk. You notice […]

The Once, Recent, and Future Fed

The United States got its first central bank in 1791, thanks to the efforts of Broadway star Alexander Hamilton. The central bank at the time wasn’t popular because of its power (it was the largest corporation in the United States). The same sentiment exists to this day! Hamilton’s bank had a 20-year charter, which wasn’t […]