When corporates borrow-the most important part is to get the lowest possible borrowing rates. When you borrow at the wrong rate -you are laden with unnecessary costs that will negatively impact your profitability. With us, you can rest assured that you will get the best borrowing rate.
We understand your borrowing needs, review the best market rates available and advise you on it. We also look at the different structuring options for Long Term borrowing because of our technical understanding of structuring loans. You can rest assured with us that you are getting an optimum cost of borrowing. Managing fixed or floating rate decisions on a timely basis require a deep understanding of financial markets and also of available hedge instruments. Managing currency of borrowing appropriately and overlaying appropriate hedge strategy saves significant cost on an IRR basis. Besides to like comparison local and overseas bond markets makes a difference in cost optimization. Improvement in your rating requires careful strategy and that also brings interest cost savings.
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Interest Rates services that we provide
Loan interest rate reduction
We will be evaluating your working capital and term loan portfolio. On the working capital, we will advise you when to go for PCFC, PCRE, EPC, FCTL, CC, CP, etc, and what rate you should get. On the term loan side, we will advise you on ECB, FCTL, RTL, and how you can manage Foreign currency risk or fixed floating risk so that overall you achieve cost savings.
Loan hedging and strategy evaluation
We support the evaluation of various hedge strategies like swaps, option-based hedging, short-term hedging with rollover, tranche hedging, partial amount hedging, etc. Within swaps also there are multiple variants and IRR calculation for each of the choices will be evaluated. Within option structures, we will be evaluating plain calls, out-of-the-money calls, spreads, staggered call spreads, etc. Optimum hedge structure reduces interest cost
Pricing of loan strategies and IRR scenario analysis
We will be involved in the pricing of strategies and the computation of IRR under various scenarios. There is a deep understanding of credit charges and bank models which helps in the reduction of cost.
Pricing, Negotiation and cost savings
We will set up the system for Negotiation of the pricing, strategy for getting effective pricing, and support in negotiations if required. This will be an extremely important aspect as the possibility of leakages can be significant. Often banks charge the high prices on deal execution and considering we have worked in senior management positions in both Indian and Foreign banks we understand the psychology and the tricks of the trade. We help the companies in appropriate strategizing to get the right rate while dealing with the banks
Educate and introduce options and swaps for hedging where required.
Using options help at times. However, option-based hedging should not be done without deep understanding. We educate and handhold companies in understanding vols surface, Greeks like delta, gamma and how to use the Greeks for decision making and monitoring.
We bring structured financing ideas and execution to corporates. Structuring involves tweaking of securities, the composition of loans, fixed-floating switching, international borrowing, etc.
We have the most competitive minds working with comprehensive global data to help you get the best rates possible for your company.
Our Events are spread across the year. Our focus is to have workshops and knowledge sessions that increase the effectiveness both of an individual and an organization. The sessions are structured on practical relevant operations aspects. We also have sessions on updated, current, relevant market movements and practices, regulations, knowledge, and technology. All training sessions are free for our advisory retainer clients. Clients can register by sending us an email to [email protected]. Few of our training sessions are complimentary for everyone. Explore what we have for you.
Commodity hedging in LME, CME, OTC, etc by Indian companies
Date:- 13th July 2021
Time:– 5pm-6:30pm IST
Fee:- INR 9,000
Commodity prices have become extremely volatile and often pose a hindrance to your business planning and deal-making. To protect, you need to hedge. Here we cover correlation analysis, the basis risk of hedging, hedge instruments, and comparison, how to open an account, execution of hedges, OTC vs Exchanges. Understanding exposure and risk. Actual strategizing, hedging, monitoring.
USDINR Option Strategies for Export & Import Hedging–Part III
Date:- 29th July 2021
Time:- 5pm-6:30pm IST
Fee:- INR 9,000
Understanding option pricing and volatility surface. The implication of risk reversals and strangles. Understanding inputs to Black Scholes formulae and practical implications. Understanding Greeks like Delta, Gamma and their practical use while hedging.
Hedge Accounting for Fx and rates to avoid P&L fluctuations-Part I
Date:- 05th August 2021
Time:- 5pm-6:30pm IST
Fee:- INR 9,000
When to use hedge accounting and when to use fair value accounting. Case studies of the use of hedge accounting in various scenarios and benefits. Implementation steps for hedge accounting.
+ Fx Outlook