Columbia Capital's swap advisory services provide modeling, analysis and pricing support for interest rate swaps and other derivative transactions. With the use of swaps and related transactions growing dramatically in the municipal market in recent years, Columbia strives to ensure that its clients have full understanding of the potential risks and rewards of these tools.
Education
With new derivative products appearing with great frequency--and due to the relative lack of transparency in this market--Columbia Capital works closely with its clients to ensure they understand the mechanics of the trade, the potential risks of the swap and the underlying debt (especially floating rate debt) and the anticipated financial benefit of these transactions given average historical rates, as well as high-rate and low-rate market scenarios.
Modeling and Analysis
Using industry-standard tools, Columbia can model and analyze the potential benefits and risks of a swap or derivative trade for its clients. This analysis can be compared side-by-side with other alternatives (fixed-rate foward transactions, interest-rate locks, etc.).
Pricing Support
Columbia Capital provides pricing support for transactions, including providing the fairness opinion required by many bond attorneys.
Case Studies
For some illustrations of how Columbia Capital makes a difference for its clients, click here.