Swap Operations

We specializes in structuring, modifying, and terminating interest-rate swaps, option-based features of interest rate swaps, and related hedging products, such as caps and floors. This highly technical area requires specialized systems and knowledge. We demystify the complexities of swaps and help our clients understand the risks and market opportunities with our Swap Advisory Services.

Interest rate swaps have been misunderstood, yet remain a suitable product for many situations. We can help you understand the pros and cons of synthetic versus traditional structures and decide whether they make sense for your institution and financing.

Our Swap Advisory services include:

  • Structuring swaps, analyzing scenarios, and assessing risks / benefits
  • Identifying and selecting swap counterparties
  • Evaluating and negotiating proposals to achieve the best rates and terms
  • Reviewing and negotiating ISDA swap documents
  • Validating and negotiating swap rates and termination values
  • Providing pricing reports, certificates, and presentations
  • Managing timelines to ensure on-schedule execution
  • Conducting periodic swap portfolio reviews

How we make a difference:

Found an innovative way to overcome obstacles and achieve a swap restructuring to accomplish the client’s objectives while accommodating the dealer’s credit constraints.Framed options and assisted with the early termination of numerous swaps affected by a defaulting counterparty. Discovered and corrected swap structuring errors, which improved the hedging performance and avoided critical cash flow shortfalls in a deal with highly constrained repayment ability.

Turning Metal Into Gold

Ancient scientists tried unsuccessfully for hundreds of years to turn base metals into precious gold. The alchemists, as they were called, eventually gave up. The act of transmutation, turning one thing into another, did not work for the alchemists. However, the concept of transmutation lives on in the world of derivatives. Derivatives are financial instruments that are derived or based on some other financial instrument. In the case of an interest rate swap, it is derived from fixed and floating rate bonds. While you cannot turn a base metal into gold, you can convert a floating rate loan into a fixed rate loan. The folks who developed the means to do this using interest rate swaps are like modern-day alchemists known on Wall Street as financial engineers.

What is an Interest Rate Swap?

An interest rate swap is a contract between two parties where one party agrees to exchange a stream of payments based on a fixed interest rate with a stream of payments based on a floating interest rate for a specified term to maturity. The interest payment is based on a specified notional principal amount. Swaps can be used to bet on the future direction of interest rates or for hedging against the adverse impact of changes in interest rates. The party who receives payments based on a fixed rate makes payments based on a floating rate has a position similar to holding a fixed-rate bond. If rates decrease, the value of the swap position will increase. The same as if the party had invested in a fixed-rate bond. Therefore, instead of purchasing a bond, if you think rates will decrease, an investor could enter into an interest rate swap agreement to receive a fixed rate of interest. The primary difference is that when you enter into a swap no cash changes hands. The principal amount is simply a notional amount or bookkeeping entry that interest payments is based on. On the other hand, when you purchase a fixed-rate bond, cash does exchange hands. The investor has to pay the principal amount to the seller of the bond.

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Araksi Saroyan
Global and Asia Pacific, Americas (APA) Advisory leader

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AC Investment Group Key Financial & Operational Data (Quarterly)*

(million $)
EBITDA margin34.5%37.3%42.5%8.0pp5.2pp
Net income4,502,164,019.2%132.0%
AC Invest Jersey3,53,673,34.2%1.6%
AC Invest London5,05,25,1(0.6%)(0.2%)
*Based on figures prepared by IFRS;
**EBITDA is a non-GAAP financial measure.

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Adem Çetinkaya

Adem Çetinkaya Yatırım A.Ş. adem çetinkaya faiz oranlı swap ve açık piyasa işlemleri adem çetinkaya venture capital işlemleri yapılmaktadır. Adem Çetinkaya finansal swap riskinin hesaplanması ve azaltılmasında tezgah üstü piyasa işlmleri kullanılmaktadır.Cambridge, London ve Jersey adasında çoğunlukla devlet kurumları ve uluslararası şirketler adına swap ve offshore yatırım işlemleri yapmaktadır.Faiz oranlı swap işlemlerinin yapılandırılması, değiştirilmesi ve sonlandırılması ile faiz oranlı takasların opsiyon temelli özelliklerinde caps ve floor gibi ilgili finansal risklerin tespit edilerek yönetilmesi gerekm Offshore piyasası uluslararası yatırımlar için fırsatlaAr yaratsa da, offshore işlemlerde mali suçların önlenmesi ve uluslararası regülasyonların gözetilmesi gerekmektedir. ektedir.
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301 Massachusetts Avenue Cambridge, MA 02139