Avantage Reply assisted a well-known universal bank in the Eurozone to analyze, assess and document the potential liquidity and interest rate risks related to complex financing structures. The tailor-made financing solutions are important for more sophisticated clients, mostly corporations with precise financial needs, and aim at financing them via term loans, leasing, liquidity raising, securitization or short-term investments.
The project’s key objective was to provide comprehensive and complete documentation to demonstrate an exhaustive analysis of the financing structures and assess the related liquidity and interest rate risks.
There was a large number of different financing structures. Each transaction was created to target a certain market and/or need (corporate loan, leasing, liquidity raising…). Hence, the construction and understanding of the different structures were not always straightforward. Furthermore, obtaining a high level and complete understanding of most transactions required information from multiple departments.
Avantage Reply helped the client by gathering the existing information, organizing and leading workshops with all stakeholders and documenting the assessment for each transaction in scope. On the one hand, the documentation process consisted of describing the entities, the financing flows and their applicable conditions regarding each party; and on the other hand: producing a detailed assessment of the liquidity and interest rate risks.