Packaging the right idea isn't enough. These types of transactions will typically be subject to scrutiny by bank management, the board of directors, auditors and regulators, just to name a few. So it’s critical that your documentation is in order. That's why we begin with an initial asset/liability overview and progress into a highly detailed examination of your specific business situation, working closely with your accounting and lending teams to implement proven methods. Through our process we:
- examine the competitive environment you’re facing;
- meet with your board and auditors for an initial planning session;
- plan and structure every detail of the transaction, right down to matching every single cash flow and rate reset date.
And once a hedge is booked, our service is just beginning. We:
- provide ongoing assistance and reporting;
- consult with your accountants on proper accruals and journal entries;
- document periodic hedge effectiveness testing to meet the strict FAS accounting guidelines, as well as needed risk testing and compliance; and
- monitor and advise on the credit aspects of the hedge and its impact on collateral.
Plus, our staff is always available to answer any questions or research any information you may need. It’s an exclusive process we’ve created and it’s broken into what we call The Four Steps.