Swap and hedging advisory for state housing finance agencies

State housing finance agencies run some of the most complex financings in the municipal market. Variable-rate debt, mortgage portfolios that prepay at shifting speeds, and the special tax rules that govern housing bonds demand an advisor who understands both the derivatives and the agency context. Hedging a housing portfolio is specialized work in its own right. The instruments carry embedded options that have to be priced and monitored in the live derivatives market, which is why a dedicated swap advisor with real depth and presence in that market belongs on the team, alongside your cash flow advisor and bond counsel, rather than leaving the derivatives to a generalist or to the dealer on the other side of the trade. Our housing finance practice is led by a principal who priced these instruments inside a major investment bank, so your team gets bank-grade analysis with none of the bank's conflicts.

A central challenge for agencies is matching a hedge to a mortgage portfolio with various prepayment speeds. We specialize in managing that risk with embedded cancellation options inside your rate hedges: we structure and price the options and advise on which structures are trading most efficiently in the market, so you get the flexibility you need without overpaying for it. Around that, we run competitive procurements with documented best execution, verify dealer pricing against an independent Dodd-Frank mid, negotiate the ISDA in the agency's favor, and advise on terminations, novations, and restructurings. Our analytics monitor the exposures that matter on an ongoing basis: potential collateral posting as rates move, counterparty credit ratings and downgrade triggers, and the risks embedded in the underlying variable-rate bond portfolio. Throughout, we serve as your Qualified Independent Representative and Independent Registered Municipal Advisor.