How Swap Pricing Works
Swaps are like any other commodity, there is a wholesale price, commonly referred to as the "mid-market" price, then there is the price quoted by your bank or swap dealer. This quoted price is the wholesale price plus your bank's hedging costs and credit charges, on top of that the biggest add on is your bank's swap fee.
We can help you to verify the 'mid-market" rate, understand hedging costs and credit charges, then push back on the bank's swap fee to negotiate a lower swap rate.
We can help you to verify the 'mid-market" rate, understand hedging costs and credit charges, then push back on the bank's swap fee to negotiate a lower swap rate.
For Commercial BorrowersHow Swap Pricing WorksWhy The ISDA MattersLoan Pre-Payment and Swap BreakageHow Can We Help?
Request a Swap Quote
Services at a Glance
- Pricing swaps: We use the same models and curves the dealers use. We can show you hidden fees and help you negotiate lower rates.
- Derivatives APAC: From China to Australia, PRMs new APAC team provides specialist derivatives advice to funds and corporates.
- Portfolio Optimization: We offer cost effective access to portfolio optimization tools. We can evaluate bond trades, model changes in portfolio strategy and produce detail portfolio reporting.
- ISDA documents: Written by dealers for dealers. We negotiate better terms and reduce your risk.
- ISDA Risk Analytics: A proprietary system for measuring risk concentrations in ISDAs across your dealers.
- Hedge Accounting and Risk Reporting: We offer a full suite of reports for hedge effectiveness testing, credit risk, stress testing, swap valuations and Call Reports.
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