Interest Rate / FX Risk Management
AEGIS partners with private equity firms to mitigate interest rate and foreign exchange risk, identify portfolio commodity exposures, and protect their investment. See how one of our private equity clients was able to protect their investment portfolio.
Real Estate Developer Utilizes an Interest Rate Cap to Create a Synthetic Swap
A residential real estate developer had a floating-rate bank loan with an embedded interest rate index floor – a common requirement from banks. After thorough analysis, AEGIS advised the company to purchase an interest rate cap at the same rate as the loan's floor, creating a "synthetic swap". This swap protects the company’s floating interest expense while working in conjunction with the pre-existing loan floor.