|
Interest Rate Derivatives
George K. Baum & Company has devoted significant resources to developing and
growing its swap expertise as interest rate swaps have become a widely-used
financing tool in municipal finance. The firm has extensive experience in
the competitive interest rate swap market and has created its own AA- rated
derivatives affiliate to act as counterparty in swap transactions.
George K. Baum & Company has served as either principal, bidding agent or
swap advisor in connection with more than 175 swap transactions with
over $4 billion in total initial notional amount. Our team of swap
experts assists clients in structuring, pricing and analyzing complicated
swap transactions. They also track clients' existing swap contracts to
allow our clients to be positioned to take advantage of market opportunities.
Services that we provide when acting as swap agent include:
Structuring Advice: Determine the most attractive swap
structure for the client with consideration for how the swap product fits
within both the specific financing structure and the client's overall
outstanding debt portfolio.
Document Negotiation: Work with the client's counsel to negotiate the
legal documents that support the swap transaction to ensure fair and
reasonable provisions are incorporated into the contract between the
client and the swap provider.
Pricing Verification or Bid Solicitation: George K. Baum &
Company can act as either swap advisor or bidding agent. In either role, the
firm works on behalf of the client to confirm that the swap rate it locks in
is a fair, reasonable and defensible rate - either by checking the pricing as
an advisor or via a competitive bid process.
On-Going Swap Maintenance and Support: Monitor swap payment invoices
and mark-to-market values to be sure they are accurate and interface with
the swap provider to remedy any discrepancies or problems.
The professionals that staff our short-term desk have established strong
relationships with all providers of interest rate swaps and have extensive
industry knowledge of applicable trends and products.
GKB Financial Services Corporation II
To ensure that our municipal finance clients have access to all the products
and services the public debt markets can provide, George K. Baum Holdings,
Inc., the parent of George K. Baum & Company, has created a new subsidiary: GKB
Financial Services Corporation II ("FSC"). FSC's mission is to provide clients
with non-traditional financial products such as interest rate swaps, caps
and hedges. We believe that with FSC, George K. Baum & Company is the
first domestic investment firm not headquartered on Wall Street able to
directly offer clients these sophisticated financial products.
George K. Baum & Company has the ability to negotiate interest rate
swaps directly with our clients through FSC. FSC has negotiated six
swap contracts with an aggregate notional amount exceeding $150 million.
Negotiated Underwriter and Remarketing Agent of Taxable & Tax-Exempt Short Term Notes
Reinvestment of Bond Proceeds
Key Contacts
|
