STRATEGIC RISK MANAGEMENT
M&A and Event driven
- Strategic assessment of financial and economic exposures on enterprise value
- Alignment of financial risk factors with long term valuations
- Strategic assessment of financial and economic exposures on enterprise value
Banking relationship evaluation
- Advanced replication of banks capital usage methodology
- Dynamic calculations of returns on capital across all banking services
- Integration of Basel reforms and capital structure planning
Derivatives portfolio management
- Credit mitigation and/or CSA optimisation
- Management of credit mitigants on refinancing costs and debt leverage
- Portfolio compression and restructuring
Capital markets implementation
- Independent design of optimal risk management policy
- Integrated legal, regulatory and credit risk framework
- Economic and accounting effectiveness
TRANSACTION ADVISORY
Unlock value
- Changes to banking regulations and capital requirements have resulted in higher cost of banking capital, increased syndication constraints and more complex financings.
- Financing offers now include multiple structuring features, credit related clauses, undisclosed embedded options, complex adjustment factors or charges which are typically designed to boost banks’ returns on capital.
- Derivatives inception, restructure and unwind require expert knowledge of banking world to ensure pricing fairness
- Leemax’s investment banking approach brings unique financial engineering expertise and advisory experience with unparalleled cash in hand generation to borrowers.
- Advanced modelling of covenants risk under dynamic rates and cash flow scenarios
- Structural consistency of waterfall between debt tranches and matching derivatives
- Neutralisation of embedded floors and monetisation of negative interest rates
- Net interest expense and risk profile optimisation vs. ad-hoc constraints set out by syndicate
- Disclosure of embedded options and structural super senior items
- Management of rate benchmark future changes and subsequent risks and costs
- Securing of underwriting spreads and removal of regulatory options
- Contingency planning in case of repayment acceleration or credit event
- Generic minimisation of additional costs
- Hedging strategy optimisation upon banks credit and capital requirements
- Advanced calculations of actual credit margins and other pricing adjustments
- Negotiated margins based on banks own measure of return on capital (e.g returns on RWAs)
- Optimization of quote process in limited competitive situation. Risk-free execution and full transparency
Structuring
- Advanced modelling of covenants risk under dynamic rates and cash flow scenarios
- Structural consistency of waterfall between debt tranches and matching derivatives
- Neutralisation of embedded floors and monetisation of negative interest rates
- Net interest expense and risk profile optimisation vs. ad-hoc constraints set out by syndicate
Documentation
- Disclosure of embedded options and structural super senior items
- Management of rate benchmark future changes and subsequent risks and costs
- Securing of underwriting spreads and removal of regulatory options
- Contingency planning in case of repayment acceleration or credit event
- Generic minimisation of additional costs
Implementation
- Hedging strategy optimisation upon banks credit and capital requirements
- Advanced calculations of actual credit margins and other pricing adjustments
- Negotiated margins based on banks own measure of return on capital (e.g returns on RWAs)
- Optimization of quote process in limited competitive situation. Risk-free execution and full transparency
DISPUTE RESOLUTION
Unique insight from the Lehman Brothers crisis
Active advisory and deal making practice
Contemporary expertise and know-how
- Derivatives forensic analysis
- Advanced derivatives analytics across asset classes
- Inception and close out assessments
- Review of transaction terms and credit mitigation contracts
- Distressed and bankruptcy situations
- Credit breaks and early terminations
- Portfolio close out and unwinds on default
- Admitted claims and recovery management
- Suitability and compliance
- Mis-selling and manipulation
- Governance, suitability and Mifid compliance
- General market practice