Swap Consulting :: Analysis of Market Opportunities

Derivatives serve to provide additional flexibility and provide a valuable tool that can be used as part of an overall debt issuance and management. CDR is constantly on the cutting edge of the capital markets, monitoring market conditions and looking for innovative ways to add value for our clients. CDR evaluates proposals submitted by prospective swap providers, and provides recommendations for any transaction structure utilizing a swap/derivative product relative to a cash-market counterpart. This analysis not only includes an economic analysis, but also issues such as interest rate exposure/assumptions, basis risk, impact of swap or counterparty exposure, liquidity, insurance and capacity, and future restructuring flexibility.

CDR takes a conservative approach to highlight/analyze the risks and benefits of proposed transactions and structures including:

• Hedge effectiveness
• Economic benefit
• Risk components
• Legality of structure
• Impact on existing obligations
• Effect on outstanding debt portfolio and swap portfolio
• Rating agency requirements and constraints