Provident Risk Management Campaign Aims to Reduce Swap Fees on Interest Rate Swaps

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Provident Risk Management campaign will give commercial borrowers the facts about swap pricing and try to ensure they get the best rate and avoid excessive hidden fees.

Provident Risk Management (PRM), a Charlotte based Rates Advisor to business and community banks, is launching a new campaign to educate commercial borrowers about hidden fees in interest rate swaps. The big four national banks routinely require commercial borrowers to hedge their floating rate loans by executing a swap. More and more regional banks are also selling swaps.

These loan swaps come at a staggering cost to American business. OCC regulated banks reported $6.1 Billion in derivatives trading revenue in the first three months of this year, that's a run rate of $24 Billion of hidden swap fees for 2014.

At PRM we believe that American business can slash hidden swap fees by getting price transparency and swap market expertise. American business needs to get the Rate Facts before pricing a swap. PRM's Rate Facts infograph lays down some simple swap guidelines for borrowers.

To learn more contact PRM at 704 756 1543, email mmcconnell(at)providentrisk(dot)com, or follow Provident Risk Management on Linkedin

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Mart Mcconnell

Mart McConnell
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