Interest Rate Risk

Variance is an independent provider of interest rate risk financial hedging advisory services. After assessing the clientÔÇÖs risks, objectives and constraints, we help identify the various financial instruments that address the risks: interest rate swaps, caps, collars, or other structured solutions.

The risks associated with interest rates and the financial instrument used to hedge these risks can be complex and difficult to understand. Clients partner with us to help them navigate through the complexity and provide them with the information needed to make informed decisions. Examples include the following:

  • Real estate developer hedging variable rate project finance loans
  • Local authority engaged in complex liability-side structured products
  • Private company restructuring their credit facilities
  • Regional commercial bank hedging balance sheet duration mismatches
  • Company issuing a floating rate note

Once a particular hedging strategy has been selected, Variance will work to put the documentation in place and efficiently execute each transaction, whether through competitive auction or negotiation with a single financial counterpart.

Variance accompanies the client along all the steps involved in the process. Variance generates reports for proper follow-up and assists the client in dealing with all accounting issues that arise from the transactions.