Advoca Capital offers both tax-exempt and taxable interest rate risk management transaction and advisory services to provide clients with the tools necessary to achieve their financing needs. Advoca’s interest rate risk advisory service is an important resource to properly structure a taxable or tax-exempt financing.
The most common risk management products are interest rate swap and interest rate caps. This tool essentially enables counterparties to exchange cash flows of a floating rate debt obligation for cash flows of a fixed rate or fixed rate for cash flows of a floating rate debt obligation. The most common goal for using interest rate swaps and interest rate caps is to hedge against interest rate volatility.
These interest rate management tools, commonly referred to as derivatives, include the following: