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Morgan Keegan » Fixed Income Capital Markets » Swap Advisory Services  1 (800) 564-3588

Swap Advisory and Swap Counterparty Services

Morgan Keegan’s Financial Products Group (MKFP) serves as both swap advisor and swap counterparty with credit guarantee provided by Deutsche Bank AG (Aa3/AA-) on all sizes of swap transactions. Morgan Keegan provides important services during the execution of new transactions that will result in efficient pricing. Some of our services available during a swap transaction are listed below:

  • Advise and recommend the most appropriate transaction by understanding the goals, objectives and risk parameters of our clients.
  • Advise as to the proper ratio of interest rate swap(s) or other hedging transaction(s) relative to the issuer’s total asset/liability mix after giving consideration to the specific goals and objectives of the issuer.
  • Provide alternative swap opportunities and make recommendations to the issuer as to specific hedging programs.
  • Assist and work with legal counsel and the counterparty in the preparation, negotiation and execution of all swap documentation.
  • Recommend the best pricing process that meets the client’s goals and objectives.
  • Review the capabilities and financial qualifications of proposed swap counterparties and make recommendations as to their suitability.
  • Advise and recommend the most appropriate swap basis (LIBOR-based index swap vs. BMA-based index swap) and optimum term of swap.
  • Work with legal counsel to determine the benefits of an integrated vs. non-integrated election of the interest rate swap.
  • Advise and recommend the viability of various forms of optionality including the use of dynamic options as well as traditional cancellation features.
  • Continuously monitor and update the issuer regarding swap market conditions and resulting opportunities that are available to the issuer both prior to and following the execution of the contemplated swap transaction.
  • Advise on fair market swap rates and various procedural and counterparty selection alternatives available.
  • Advise and prepare an interest rate swap term sheet for the execution of the swap.

Representative clients for which MKFP has served as swap advisor or swap counterparty:

  • Shelby County, Tennessee (counterparty)
  • Jefferson County, Alabama (advisor)
  • Mississippi Development Bank (counterparty)
  • Vanderbilt University, Nashville, Tennessee (advisor)
  • Metropolitan Nashville (Tennessee) Airport Authority (advisor)
  • Finance Authority of New Orleans, Louisiana (advisor)
  • University of Mississippi (advisor)
  • Baptist Hospital, Memphis, Tennessee (advisor)
  • Jackson-Madison County (Tennessee) General Hospital District (advisor)