Over the past 20 years, interest rate swaps have become a common tool for governments and non-profit entities nationwide. Interest rate swaps and other related structures allow tax-exempt entities to reduce their borrowing costs and foster more flexible financing terms. These products can enable borrowers to hedge interest rate risk and alter the characteristics of the debt portfolio with relatively quick and easy execution. As an independent advisor, Davidson employs an educational and collaborative approach to advising clients on swaps and structured products. We educate our clients on the various risks and financial benefits associated with swaps. We walk our clients through all relevant aspects of swap structuring, pricing, documentation, execution, accounting/valuation, and policy development. Our state-of-the-art pricing systems fed by live market data provide maximum transparency for the simplest to the most complex structures. This transparency, coupled with our negotiation of fair terms, puts our clients on a level playing field with swap counterparties.

Davidson's approach ensures a structure that works with the overall financing goals and risk tolerance of the client.

The swap advisory professionals at Davidson have consulted on billions in notional transactions with numerous municipal and non-profit borrowers. Our broad experience includes products such as:

• SIFMA and LIBOR Swaps
• Swaptions
• Forward Starting Swaps
• Basis Swaps
• Caps, Floors, and Collars