Nonprofit Derivatives Advisory
How We Can Help:
We help save you money and time when entering into, modifying or terminating an interest rate swap with your existing or new banking partners. As a view-neutral advisory firm, McGuire Sponsel is independent and not associated with any bank or financial provider. We never act as a counterparty. Instead, we serve as an agent in arranging our clients’ derivative transactions thereby ensuring unbiased advice. Using our derivative expertise and infrastructure, we will work with your existing financial providers to ensure appropriate pricing and structure of your derivative transactions, bringing efficiencies and price transparency to your derivative transaction. We coordinate the entire derivative process allowing you to focus on other aspects of your company.
Every client has its own, unique capital structure and, as such, has a different level of exposure to interest rate hedging. McGuire Sponsel will provide the education desired and/or required to ensure that board members, management and staff have the desired level of understanding of the mechanics, risks, and benefits associated with interest rate hedging solutions. McGuire Sponsel offers a full suite of independent advisory services:
- Trade Execution
- Valuation and Pricing Verification
- Structuring and Bidding
- Negotiation of Terms
- Monitoring and Performance Evaluation
- Hedge Accounting (ASC 815 & ASC 820)
- Interest Rate Risk Management Policies
There are seemingly an infinite number of possible hedging structures that a borrower may implement when taking into account notional, effective date, maturity, amortization, periodicity, day count, security, etc. McGuire Sponsel will assist in the development and structuring of interest rate risk management strategies and incorporating borrowers’ objectives, constraints and risk tolerances. Our objectives, however, always remain the same – add value for our clients through education, better transaction execution, increased transparency and improved risk management.
As an Independent Registered Municipal Advisor (IRMA), retaining McGuire Sponsel qualifies under the IRMA exception to the Securities and Exchange Commission’s (SEC’s) new Municipal Advisor rule and allows municipal borrowers to maintain full communications with broker-dealers. McGuire Sponsel, LLC is registered with the SEC and the Municipal Securities Rulemaking Board (MSRB).
Oakland City University, located in southwest Indiana, plans to construct a $14.9 million residence hall and alumni lodge. McGuire Sponsel was engaged by the university to procure financing for the housing and mixed-use development, including the impact that it would […] Read More
Doug Dalton recently was featured in Rea & Associates’ newsletter. He discusses how interest rate swaps can provide a hedge against rate risk. When dealing with loans of a substantial sum, borrowers often turn to hedging strategies to deflect some of […] Read More
NOS Wellness, LLC, a subsidiary of Buckingham Companies, recently retained McGuire Sponsel to ensure appropriate strategy, documentation, structure and pricing of a lender-mandated interest rate hedge. The lender was requiring an interest rate swap to hedge against the impact of […] Read More