We are experts in structuring and arranging debt solutions for our clients. From credit analysis, structuring, arranging and closing
Companies use over-the-counter derivatives — swaps, options and the like — for a wide range of hedging purposes. Among the most common are exchanging floating-rate interest payments for fixed-rate payments, hedging foreign-currency risk and hedging commodity costs. While useful in nature, the structure and pricing of derivatives contracts is complex and lacks transparency. Using Marisk to advise or implement a hedging strategy allows clients to make informed decisions that result in better execution and directly impacts their bottom line.
By providing expertise and negotiating power, Marisk brings transparency to the process of risk management, saving time and money for its clients by helping them analyze risks, review documentation and reduce the costs of new derivatives transactions, modifications or terminations without any conflicts of interest.
From hedging strategy development, transaction executions to derivatives valuations, Marisk will serve as an integral member of our clients’ teams. Marisk benefits from the direct involvement with transactions across multiple industries and asset-classes. As part of your outsourced derivatives deal team, Marisk helps you lower costs, improve terms and optimize execution while maintaining good banking relationships.
By working with Marisk, you benefit from the following:
•We work with you to determine your targeted risk metric, such a change in cash flow, incorporating stress analysis into pro-forma income projections.
•We help identify the best hedge strategy to meet your goals.
•We provide a template hedge policy and work with you to customize it for your needs.
•When reviewing your credit agreements we help to ensure that the interest rate, hedging and other definitions and requirements accurately reflect the intent of the hedge transactions and are commercially reasonable.
•When reviewing your ISDA documents, we introduce concepts of transparency and fair play to achieve a more balanced and commercially reasonable framework for hedging.
•We work closely with your controllers and auditors and provide accounting and valuation support.
•Most importantly, we make sure you get the best execution with your dealers, helping you save transaction costs.
We are experts in structuring and arranging debt solutions for our clients. With significant corporate lending experience across the team, Marisk understands the importance of lender relationships in delivering successful outcomes and maintains close contacts with the key lenders to our sectors as well as new entrants seeking to gain market share. These relationships provide us and our clients with a clear understanding of lenders’ specific preferences around structure, sectors, credit quality, tenor and pricing, allowing us to direct opportunities towards the lenders most likely to align with our clients’ funding objectives.
Where possible, we will seek to bring multiple lenders into play in order to generate competitive tension for structure, terms and pricing. In these situations, we support the borrower by preparing a full information memorandum setting out the company’s credit story as well as the preferred structure and terms. This forms the basis of a series of bank meetings/presentations followed by receipt and evaluation of offers and negotiation with a preferred funder. Marisk will then work with the company and its lawyers in order to ensure that the commercial terms are properly reflected in the legal documentation to be entered into.
If interest rate hedging forms an integral part of the funding package in question, Marisk will ensure that the costs associated with hedging are properly understood and agreed early in the process so that this forms part of the overall economic appraisal of the offers received.
INTEREST RATE HEDGING
Whether your lender requires hedging, or you want to protect your balance sheet, our range of Hedge Advisory services ensures execution of the right hedge, at a fair price, under fair terms, while establishing refinance flexibility and reducing interest expense
Having the right hedge in place is critical to mitigate losses and risk associated with currency fluctuations; this cannot be executed without considering the appropriate market timing and ensuring price transparency
Eliminate or reduce the impact of the variation in commodities prices on your income statement
VALUATIONS AND MONITORING
Independent valuations of complex instruments and structures. Independent Mark-to-Market valuations. Suitability and Fairness opinion. Counterparty risk management
ACCOUNTING AND DOCUMENTATION
Hedge documentation is often overlooked and misunderstood. We negotiate more favorable terms for you