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Swaps/Derivatives
mGIC professionals
are expert in the workings of derivative products, and can provide the
specialized advisory and analytic services that are critical for clients
in dealing with the complexities of the municipal swap market. Municipal
derivatives transactions are complex, individually tailored “over
the counter” transactions and it is often difficult for an issuer
to compare structures or pricing levels.
The types of transactions we have executed cover the spectrum of municipal
derivatives transactions and include:
Floating-to-Fixed Interest
Rate Swaps
Fixed-to-Floating Interest Rate Swaps
Basis Swaps
Forward Bond Purchase Agreements
mGIC’s involvement
in a derivatives transaction allows an issuer to effectively “decouple”
its derivative from its bond issue. In using our services, many Issuers
have felt the freedom to pursue and select derivatives solutions independently
of the bond underwriting process, and thus they extract the most favorable
terms, structure and pricing from each side of the transaction (bonds
and derivatives).
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