Cardea Partners

By providing expert derivative and debt advisory services with detailed understanding of a lender's motives, Cardea Partners brings transparency to the process of risk management and borrowing analysis, saving time and money for our partner organizations. Whether you are using an interest rate swap, cap or other financial derivative, Cardea can help you manage the risks and costs.

Derivative Advising

As your organization decides how to manage interest rate risk on a debt facility or portfolio, Cardea Partners provides structuring to meet your unique risk profile. Whether you need to establish a bidding platform to engage several counterparties or are negotiating directly with one institution, the experience of Cardea Partners puts you on a level playing with pricing transparency.

Debt Portfolio Advising

Prior to the credit collapse, real estate borrowers used Treasury locks (T-locks) to fix the base rate of anticipated debt destined for CMBS (commercial mortgage-backed securities) markets. When the CMBS market dried up, many developers were left with interest rate protection for debt that could not be placed--Cardea has the expertise to manage existing trades like these and others in the context of current debt markets, assisting clients in extrication from or amendment to prior financing.

Negotiated Savings

Cardea Partners has saved multiple borrowers hundreds of thousands of dollars by intelligently structuring hedge facilities and negotiating the important details with bank counterparties. Required hedges are common, but adjusting the terms of a required hedge can increase refinance flexibility and reduce interest expense in the short term and through maturity. In such a unique rate environment, the cost savings from creative structuring can have dramatic implications.

ISDA Documentation

The International Swaps and Derivatives Association (ISDA) is an organization for market participants using over-the-counter derivative contracts. ISDA created a standard contract that defines the terms for entering into such a trade. The contract is extensive, and in our experience, clients often sign the contract as presented to them by their bank counterparty without reviewing or negotiating terms. As a swap advisor, Cardea Partners clarifies and negotiates this document for our clients.

Hedging Policies

Municipalities and NFPs are under increased scrutiny to manage their use of derivatives for hedging. Cardea Partners works with tax-exempt entities to establish derivative policies and enact protocols. Independent advice is the first step a municipality can take to ensure their hedging practices are consistent and fairly priced.

About

Cardea Partners is a derivatives and debt advisory firm serving the unique needs of corporate, real estate, Native American, not for profit, and municipal borrowers.  Registered with the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB) as swap advisors and able to act as an independent representative for swap counterparties, our firm is comprised of highly experienced derivatives professionals.  We share a combined 45 years in the industry and having executed over $1 trillion notional in derivative contracts.  Our time spent on the trading floors of major financial institutions allows Cardea to stand beside our clients with comprehensive insight into their banking relationships and the market of products available to manage market risk.  We explain the market, and reduce the costs of accessing it for our clients.

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Cardea Partners on the Road

January 19th & 20th Seattle, WA

January 30th & 31st Baltimore, MD

February 8th to 10th Charlotte, NC and South Carolina

February 7th to 9th Denver, CO

February 13th to 15th, Portland OR

February 14th to 16th Las Vegas, NV

March 20th to 22nd New Orleans, LA (NAFOA)

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Services

Derivative Advising

Debt Portfolio Advising

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