17. May 2017

Geblitzt!: Read the current LPA Geistesblitz Interest rate swap with fair value adjustment

In light of our consulting activities we are being increasingly confronted with fixed-rate financings. The spectrum hereby reaches from fixed-rate bonds, promissory note loans and bearer bonds all the way to the “classic” bank loan. Contrary to the “synthetic fixed rate”, i.e. the addition of a fixed rate component to a variable financing, it seems difficult at first glance to supplement these financial instruments with interest rate derivatives.

The Geistesblitz „Interest rate swap with fair value adjustment“ shows a possibility to offer your customers an interest-rate hedge as a pre-hedge for a planned fixed-rate financing. It thus represents a further possibility to supplement a fixed-rate financing with an interest rate derivative. The solution focuses on maintaining the flexibility of the customer while optimizing xVA-costs.

We wish you an enjoyable reading.

If you’re interested to read the whole article, just send an email to: contact@l-p-a.com. We’re pleased about your interest and are happy to send it to you.

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