Managing interest rate exposure is one of the most critical components to the success of a project. Frequently, discussions around interest rates are treated like a snapshot decision to be made at the closing table.
Pensford prefers to employ a more dynamic and ongoing strategy. By understanding the project business model, risk tolerance, disposition plans, and view on interest rates, we can work with you to customize strategy to achieve objectives for each project.
The most ideal strategies strike a balance between flexibility and cost while mitigating exposure to interest rates.
By committing to an ongoing risk management strategy, clients can retain flexibility over the life of the financing. Over time, we will have greater insight into the interest rate market while you will have increased clarity around the plans for the underlying asset.
The interest rate market is a constantly changing environment and strategies need to adapt to these changes.
We will never know your business as well as you do. Our goal is to help identify the benefits, risks, and considerations of various hedging strategies so that you can make an informed decision.