Tag Archive for: swaptions

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Rates are on the Rise: What Smart Borrowers are Doing Now

Regardless of your or our personal opinion, it’s undeniable that interest rates are steadily climbing higher.  As borrowers contemplate the pain a world of higher rates will bring, one thing is crystal clear: the cost of financing is becoming more and more expensive; higher rates are likely to raise financing costs and reduce asset values, especially […]

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A Better Way to Hedge Your Future Term Debt

Now that the Fed seems to be on a consistent hiking path and short-term rates are steadily climbing higher, we’re increasingly asked by borrowers,”How can I lock-in long-term rates today on an expected future financing occurring in six months, one year or beyond?” Sure, long-term interest rates are attractive by historical standards right now, but the borrower’s […]

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Swaptions 101

We are often asked how a borrower can lock-in long-term rates today on debt maturing in one, two years or beyond. Long-term interest rates are rather attractive by historical standards, but the borrowers dilemma is the debt they want to hedge isn’t due for a couple of years or the project is in a construction […]