Interest Rate Derivatives – Greg Wells

Derivative Logic is fantastic. Rex and the Derivative Logic guys know those products. They know what’s going on in the market. So it helps level the playing field against the bank you’re trying to negotiate with.

Greg Wells: VP, Austi, LLC

I’ve been working with Rex for almost 17 years on Swaps, ISDA negotiations, interest rate hedging strategies and various forms of interest rate derivative products. He’s been fantastic.

The complexity of the interest rate hedging world, the derivative market, the pricing complexity and the product complexity has changed so much over the years that I think you’d be naive to think you could understand it well enough to make intelligent decisions on your own while you’re trying to run your own business and engage in your own financial transactions relative to your day to day work.

It’s just gotten so creative and so unique that if you didn’t have somebody like Rex and Derivative Logic advising and helping I have no idea how you’d be able to keep up with what’s going on.

Derivative Logic is fantastic.

The best part about working with Rex is there is never a salesman approach. It’s always education, facts and opportunity. I never feel like he’s trying to make me do something or sell me something. It is all about finding the absolutely best strategic approach to what we’re trying to accomplish. It’s easy to trust and easy to understand a very, very complex set of variables. I like the way they go about explaining that process and the benefits and risks associated with those transactions.

The best benefit of working with Derivative Logic comes when you give them a set of variables and a set of situations that you’re trying to accomplish and you let them go to work. We recently did a transaction on our last loan that I’m told was the greatest hedge ever done in the capital markets. We outlined what our objective was and the variables lined up accordingly with what Rex proposed, which allowed us to enter into a very complex hedge on an interest rate product for absolutely no cost to us whatsoever. We would never have been able to do that on our own. We would never have been able to do that if Rex was getting paid by the banker, instead of just being in an advisory role. It’s way better to have them on your side versus not having them on your side.

It’s impossible as a businessperson to understand the behind the scenes workings of your lender and their trading desk. Rex and the Derivative Logic guys know those products. They know what’s going on in the market. So it helps level the playing field against the bank you’re trying to negotiate with.

Jim’s been great too. Jim helped me with a currency transaction that we were evaluating. He walked me through all the variables and all the risks and everything associated with it. We ultimately ended up not doing the transaction because of our dialog with him and everything he pointed out regarding the pros and cons.

Greg Wells: VP, Austi, LLC

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