Hedge Advisory and Structuring
Over the last 15 years, the financial derivatives market has expanded exponentially. Today these tools are utilized by such varying entities as speculators and hedgers, borrowers and lenders, professionals and less sophisticated end users. More than ever, derivative dealers (mostly commercial and investment banks) rely on the revenue generated by trading and marketing these instruments to increase returns to their shareholders. Lenders, credit enhancers and investors also rely on these instruments to shed unwanted risk. Typically these products include swaps, caps, floors, swap options, etc.
Significant advantages exist for borrowers who use derivatives to manage interest rate risk along with potentially costly pitfalls. These risks are especially salient when executing transactions without an appropriate level of experience and knowledge. Kensington Capital Advisors brings the experience, knowledge and independent counsel necessary to assist in the analysis and execution of financial derivatives and structured financings.
Kensington Capital Advisors is actively engaged in the analysis, structuring and execution of hedge transactions. We will evaluate hedge structures that meet the risk management goals of our clients and are feasible given the market environment. Potential providers will be identified and key transaction terms will be specified. Pricing transparency will be provided through negotiation using our pricing models as a benchmark or a competitive bidding process. Throughout the process, our clients benefit from unbiased advice and independent representation.