Collars: The Hedge Smart Borrowers are Using Now

In our conversations over the years with borrowers of all shapes and sizes, in a myriad of industries, we’ve seen time and time again that all borrowers share the same basic goal: to take advantage of low interest rates now while protecting themselves if interest rates rise in the future. Some borrowers opt for the […]

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 Yield Curve: What You’ve Always Wanted to Know but Were Afraid to Ask

Have you always wanted a crystal ball to tell you where interest rates are headed? Look no further than the yield curve. In another installment in our Derivatives 101 series, we’ll take a look at an often misunderstood topic that’s thrown around the financial news headlines on a daily basis. How much do you really […]

Fed on the High Wire

Last Week: After a relentless run since early August, short-term interest rates declined while longer term ones increased, driven by disappointing US retail sales and factory output data and speeches by Fed officials that failed to instill any belief in a near-term rate hike. Equities, Oil and Gold all declined, while the 10-year Treasury traded […]

The ISDA – A Hedger’s Minefield

This long, and to many people, incomprehensible document has just been delivered electronically by your friendly banker because you are about to execute a derivative or are contemplating one. Okay, it’s time to take a deep breath and not sign that document until you fully understand what it means to you. While your banker may […]