Swap and hedging advisory for municipal issuers and 501(c)(3) nonprofits

Tax-exempt issuers use swaps and other derivatives to manage interest rate risk on variable-rate bonds, direct bank placements, and floating-rate debt, and to hedge the rate on a planned fixed-rate issuance before it prices. Our municipal practice is led by a principal who worked inside a major investment bank, alongside its public finance investment banking team, with a deep command of the ins and outs of municipal finance, deal structuring, and bond pricing. Evercrest advises across the full range of issuers, from organizations executing their first swap to some of the largest and most complex issuers in the country, work that takes the experience and expertise our team has built over more than 40 years.

We present strategies to boards of directors, help draft or modernize a swap policy, and design a risk-management framework built to last the life of the debt. We advise on swap strategy and structure, run competitive procurements that document best execution, verify dealer pricing against an independent Dodd-Frank mid, and negotiate the ISDA and bank documentation in your favor. We provide hedge effectiveness testing your auditors recognize, under GASB 53 and 72 for governmental issuers and ASC 815 and 820 for nonprofits reporting under FASB. When an existing portfolio needs attention, we advise on terminations, novations, restructurings, and the swap implications of a refunding. Throughout, we serve as your Qualified Independent Representative and Independent Registered Municipal Advisor.