Minimize the cost of modifying your swap.

An interest rate swap is not necessarily a one-time transaction.  Often a borrower will need to change or amend their swap to meet a modified loan structure or to take advantage of a changed interest rate environment.  Even a small change in a swap rate can have a large impact on a borrower’s interest cost (click here to see what just a.01% change in your swap rate is worth).

Getting the Best Rate

In the modification process, the bank will charge additional undisclosed fees as a swap modification is actually composed of two separate transactions – the termination of the existing swap and the execution of a new swap.  DAG’s experience and pricing expertise allow us to measure and negotiate the bank’s fees of modifying your swap.  We calculate a swap’s value by using the same data and programs used by the banks, to create transparent pricing and get you the best possible deal.

DAG simplifies and maximizes value in the swap modification process by:

Calculating and true swap termination value

Negotiating the termination payment and the bank’s profit margin

Analyzing possible swap modifications to meet changes in the loan structure or interest rates

Minimizing fees on the execution a new swap

Providing ongoing valuation and accounting for the swap

Have peace of mind with DAG handling your hedging transaction.

DAG is an independent, financial advisor serving the corporate, non-profit, tax-exempt and municipal debt markets.  We guide borrowers in the use of interest rate swap and bond reinvestment products, acting as a consultant, structurer, and bidding agent in these transactions.