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Hedging Strategy

Harbor Derivatives professionals listen to our client’s hedging needs, business plans, risk tolerance and investment horizon. Once fully understanding a client’s financing needs we formulate a hedging strategy tailored to the client’s needs and goals. Our goal is to help clients minimize interest rate risk and reduce interest rate expenses.

Market Insight

We provide market updates and commentary with views on the market directly with clients on a daily basis. We also provide the following publications:

  • Weekly Rate Sheet
  • Monthly LIBOR Futures Chart
  • Quarterly Hedging Strategy Newsletter

Risk Analysis

Harbor Derivatives provides a complete analysis of expected prepayment outcomes within a matrix of various interest rate scenarios. For every proposed transaction, a client is able to see the cost behind potential outcomes should a prepayment event occur given various interest rate scenarios.

Trade Execution

Harbor Derivatives manages the trade execution process to the benefit of our clients.  We have strong, longstanding relationships with the hedge providers in market including international banks, Wall Street firms and regional banks allowing us to ensure clients that the execution of their trade runs efficiently resulting in cost savings with no surprises for the borrower.

Documentation Negotiation and Guidance

We walk borrowers through the process of preparing documentation to satisfy ISDA, bank “Know Your Customer” requirements and those for the often complex Dodd Frank regulations.

Rate Negotiation

We provide transparency of bank margins, determine appropriate levels, and negotiate pricing and rates directly with the hedge provider providing significant savings for borrowers.


We provide timely and accurate quarterly mid-market valuations as an independent source for all transactions free of charge. For clients who follow FAS133/ASC815, FAS157/ASC820 or GASB, Harbor Derivatives provides adjusted hedge market valuations following Financial Accounting guidelines, SAS 70/SSAE 16 approved for a competitive fee.

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