Sample Client List

  • The Master’s College & Seminary
  • Alliance Health & Human Services
  • Austin Preparatory School
  • The City and County of Denver
  • The City of Reno
  • The City of Riverside
  • Idaho Housing and Finance Association
  • New Jersey Housing and Mortgage Finance Agency
    New Jersey
  • New Jersey Educational Facilities Authority
    New Jersey
  • Oregon Health and Science University
  • Dignity Health
  • Salem Hospital
  • Sanford-Burnham Medical Research Institute
  • Picerne Military Housing
    Rhode Island
  • San Francisco International Airport
  • The Branson School
  • The School of American Ballet
    New York


Interest Rate Swaps

Derivative Advisory and Monitoring Services

Derivatives such as interest rate swaps, caps, and floors (in general, "swaps"), can be powerful risk management and debt structuring tools for governmental and non-profit entities. However, without the benefit of specialized expertise, end-users may not be able to determine whether a transaction is appropriate for their circumstances, is being executed at an "on-market" price, and contains equitable and appropriate business terms in its ISDA documentation. In addition, it may be inefficient for end-users to maintain the necessary resources in-house to manage a swap on an on-going basis. To that end, BLX Group offers derivative advisory and monitoring services specifically tailored to the needs of governmental and non-profit entities.


BLX’s dedicated derivatives group has extensive experience in all aspects of swaps, including structuring, policy development, transaction modeling, document negotiation, and on-going monitoring/accounting compliance. BLX professionals are highly proficient in the quantitative and technical aspects of derivatives and independently model all of our clients’ swap transactions. Our pricing capabilities allow us to value even the most complex derivative structures. When combined with our emphasis on client service and our firm’s extensive municipal finance background, BLX’s derivative experience and expertise offer a superlative level of service and value.

Our swap services are designed solely to benefit the end-user of swaps. BLX does not take principal positions in any swap transactions, nor do we act as a counterparty. We provide independent, bias free expert advice to assist our clients in all facets of a swap transaction, from initial conception to execution, and thereafter with on-going monitoring and accounting compliance services. BLX has provided swap advisory services since 2004, other related services since 1989, and is registered with both the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB) as a municipal advisor.

Swap Advisory Services[more]

Swap advisory engagements can be wide ranging in terms of scope, depending on the type of transaction, client experience, and other circumstances. For example, a client who is undertaking their first swap may need assistance with policies and board presentations, while more experienced clients may only need pricing verification and accounting assistance. Other clients may need to replace a counterparty for an existing swap or terminate a swap, which may simply require verification of fair market value, or may necessitate developing sophisticated strategies and undertaking extensive negotiations with the counterparty. Because every situation is different, BLX tailors each of our engagements to the specific facts, circumstances, and needs of the client. Our objectives, however, always remain the same- add value for our clients through education, better transaction execution, increased transparency, and improved risk management.

Our advisory services include:

  1. Swap structuring and documentation
  2. Detailed Evaluation of the Pros and Cons of Proposed Transactions
  3. Swap policy development
  4. Pricing through negotiation or competitive bid process
  5. Fair market opinions/certifications

Swap Monitoring & Accounting Compliance Services[more]

Unlike fixed rate debt, interest rate swaps require on-going monitoring and other maintenance, both as part of prudent risk management procedures as well as for accounting and other reporting requirements. This is because a swap is a bilateral contractual agreement under which both parties have on-going performance obligations. Moreover, the intrinsic (or "market value") of a swap changes over time in response to market expectations of future changes in the underlying reference index on which the swap is based. As a result, a swap can represent either an asset or liability at any given time. Clients with existing swaps may require on-going assistance with monitoring critical data such market value and counterparty credit and with complying with various accounting requirements, including but not limited to GASB 53 for governmental entities, and FASB 133 (Topic 815) / FASB 157 (Topic 820) for other entities who prepare financial statements. As a natural extension to our advisory services, BLX offers comprehensive swap monitoring services based on an approach that combines client friendly technology and our long standing emphasis on hands-on client service. As part of our service, clients receive both access to BLXSwap, our proprietary web application which enables our clients to view detailed information on their entire swap portfolio via a secure web portal, as well as personalized consulting and reporting from BLX’s derivatives team.

Our monitoring and accounting compliance services include:

  • Web Based Swap Portfolio Tracking: Clients can access swap valuations (updated daily), trade details, credit support provisions, documentation, and other time dependent data via BLXSwap™. Click here for more information on BLXSwap.
  • Preparation of Comprehensive GASB 53/FASB 133/FASB 157 Reports: Our reports include both concise summaries of results as well as in-depth detailed supporting schedules for all conclusions and calculations. We pay attention to details and are extremely sensitive to our client's auditing deadlines.
  • Personalized Service: BLX’s Derivative team offers personalized service to every client. We are available to discuss portfolio specifics, computational methodologies, document mechanics, our reports with both our clients and their accountants.

Click here for information on BLX’s web-based Swap Monitoring Platform: BLXSwap™

For more information about our swap advisory, monitoring, or compliance service, please contact:

Eric Chu, Managing Director
213 612 2136

©2018 BLX Group