Sometimes a bank may want to charge a client an unreasonable cost to transfer a swap.  In this case, the best course of action may be to transfer a swap from one bank to another.  Another reason to transfer a swap is that a borrower is refinancing a loan and just needs to move the swap to the new bank.  In each case, the swap’s value must be determined and terms must be negotiated.

When any swap’s terms are changed, an opportunity arises for a bank to profit from these changes.  Any change in terms should be negotiated, as well as the value of any payments you make.  DAG’s consultants’ expertise gives clients the tools to save you thousands of dollars by exposing any hidden profits when you are negotiating the swap’s value with your Bank.

Many of the conditions surrounding an assignment or transfer of a swap are determined by the ISDA Master Agreement documents of the swap.  In addition to arranging the most favorable terms for hedge’s assignment or transfer, DAG also offers with a full range of accounting services needed because of any changes made to the hedge.  DAG wants ensures each unique client implements the right hedge, at the right price, with the best terms.
DAG simplifies and maximizes value in the swap transfer process by:

Monitoring and negotiating the bank’s profit margin

Negotiating assignment values and terms

Executing a partial termination due to a loan paydown

Accounting for termination