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.

Interest Rate Swaps: 10 Myths and Misconceptions

The professionals at Derivative Logic have 60 + years combined experience on the trading floors of four major derivative dealers.  During our countless discussions with clients from a myriad of industries over the years, we’ve seen a plethora of falsehoods come up regarding interest rate swaps over and over again. In the following 2-minute read, […]

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 […]

Defeasance is Shark Repellent

Blood is in the water. Sharks are circling. It’s no secret that real estate owners feel intense pressure due to the pandemic. While real estate costs remain largely fixed or are increasing, global shelter-in-place orders have drastically reduced the timely collection of rents. This inevitable cash flow hemorrhage leaves many property owners desperate for relief. […]

Negative Interest Rates for Dummies

From an emergency 100 basis-point Fed funds target rate cut, to restarting quantitative easing, to enacting an alphabet soup of targeted liquidity facilities, the Federal Reserve is employing everything at its disposal to ensure the financial system remains sound. While keeping credit flowing and encouraging consumers to spend are the Fed’s top priorities, there’s one […]

LIBOR Transition Cheat Sheet

The following is a quick summary of the questions we’re asked every day about the looming LIBOR transition. It’s an overview of what’s happening, what it means for borrowers, lenders and legal counselors, and a summary of what each should be doing now to prepare. Does Freddie’s recent announcement on SOFR have you scrambled? Read […]