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Analysis and Advisory
Although conducting competitive bids may be the
most visible function we perform, much of our critical work for clients
takes place before and after a transaction's execution.
We begin every reinvestment or swap assignment with
an examination of the Issuer’s bond documents and statutory authorizations
regarding permitted investments and/or swaps. Within this legal framework
and the Issuer’s investment and/or hedging objectives we consider
appropriate products and structures. We will also work with an issuer
to develop and implement a Derivatives Use
Policy if they do not already have one.
We then work closely with the client to analyze the
economic benefits and risks of the different products and structures
warranted by the client’s current situation. These analyses will
frequently include a product’s hypothetical cash-flow performance
under:
Historical Back-Testing
Hypothetical Rate Scenarios
“Extreme-Case” Outcomes and Probabilities
We have experience with the entire spectrum of
derivative and investment agreements and our commitment is in educating
our clients. Only when all stakeholders to the transaction are fully satisfied
and comfortable that a product application is appropriate do we proceed
to the structuring and documentation phase of a transaction.
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