Knowledge and Transparency.....
Wye River Group's professionals have a detailed working
knowledge of all ISDA forms and considerable experience
analyzing, valuing, structuring, bidding and executing transactions involving any
form of derivative. Given the lack of pricing transparency, and the complexity and
risks associated with derivatives, we strive to guide each client through a
deliberate and thorough process designed to ensure that it is making fully-informed decisions and all risks and idiosyncrasies of the contemplated transaction are understood.
We strongly prefer
competitive bidding of derivatives rather than negotiating terms with a
predetermined financial institution. We
conduct a thorough and open competitive bidding process in which all major
business terms are established in advance and all appropriate potential counterparties are encouraged to compete.
certain situations, a competitive solicitation may not be viable. In those cases, we seek to negotiate a
reasonable "spread to mid-market" taking into account fair market pricing for
each component of the borrower's all-in rate (including execution costs, credit
reserves and gross profit).
In our competitive solicitations, awards are typically made within a matter of minutes of receiving bids and no subsequent negotiations of terms are allowed. In general, we find that most of the major financial institutions like this approach and appreciate the level playing field and fast turnaround. In our single party negotiations, we work hard to ensure that all transaction structuring and documentation is done well in advance of receiving definitive pricing from the counterparty. This helps to eliminate any last minute surprises while providing for the maximum number of rate verifications and independent valuations during the course of the negotiation.