Market volatility can wreak havoc on operating and financial strategies.
What we do
The use of interest rate swaps, caps, floors and related products have become integral tools in a process to better coordinate a company's financial planning with its operating goals.
Providence Financial is an outsourced solution to assist community and commercial banks in providing these risk management products & services to their large business banking and commercial clients.
Whether providing construction financing, a term loan, a revolving line of credit, locking in the rate on a lease, or anticipating a permanent financing — PFPA is here to help.
The ability to separate a client's source funding from the process of managing their debt servicing costs provides tremendous flexibility and benefit.
Our Risk Management Framework
Risk Assessment
The risks associated with interest rate swaps and other derivative products can take on many forms including market risk, credit risk, legal, documentation, and operational risk.
In today's market environment, properly identifying an quantifying these risks is essential. Using sophisticated modeling, PFPA can quantify the risk associated with each individual transaction, enabling your credit team to properly underwrite and track credit exposure over the life of the transaction.
Pricing, Structuring & Market Updates
PFPA works closely with your Relationship Managers to structure and price each transaction so that it mirrors the terms and characteristics of the underlying loan. This ensures that the loan and the swap work together to create a "synthetic" fixed-rate alternative.
Documentation
The sale of any product by the bank requires clear and explicit documentation. PFPA, working in conjunction with the Relationship Manager and Closing Attorney, will generate all required documentation for the swap, including the ISDA Master Agreement and Schedule, Swap Confirmation and other documents necessary to ensure that each transaction is fully documented.
providence
/ präv-әd-әn(t)s / — noun
1. prudent management of resources; economy
2. care and preparation in advance; foresight
Get in Touch
With offices in Omaha, Nebraska and Birmingham, Alabama, our nationwide team is ready to hear from you.