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Geoffrey Sharp0 Posts
Eris Innovations, a proud member of the NPLA, is an intellectual property licenses company that partners with global exchanges to develop futures products based on their patented product design, the Eris Methodology®. Their flagship products, Eris SOFR® swap futures, are listed on CME Group and enable banks and private lenders to hedge interest rate risk with the ease and cost-effectiveness of exchange-listed contracts. To learn more about Eris SOFR Swap futures, visit erisfutures.com.
Hedging Loan Commitments with Eris SOFR
Capital Market Innovations Make Swaps Available to Anyone by Geoffrey Sharp As lenders experienced in Q3-Q4 of 2024, locking rates on loan commitments results in the assumption of interest rate risk that can adversely impact the final profitability of those loans: If interest rates rise after a loan commitment, the resale value of that loan falls, as shown in Exhibit 1. And the longer the final maturity of the loan,
Facing Interest Rate Risk with Confidence
Leverage Financial Risk Management Tools to Tame Interest Rate Risk By Michael Riddle & Geoffrey Sharp Making money in private lending requires navigating a minefield of risks every day. From mitigating legal risk with tight procedures or credit risk with careful underwriting, lenders must constantly be vigilant to identify and neutralize threats to their business. Perhaps no major risk they face is more overlooked than the interest rate risk assumed
