Competing for Commercial Loans – Winning with Swaps


Competition for commercial loans is challenging. Bankers with access to the right tools are more likely to win the right deals. Borrower swaps, sometimes called back-to-back swaps, are one the best tools available. In this presentation, bankers will see how these swaps offer greater flexibility and prepayment characteristics than traditional fixed rate loans. Swaps are no longer just for big banks – increasingly community and regional banks are making use of swaps as well.

Outline and learning objectives:

  • Understand why banks use swaps with borrowers to achieve fixed rate financings
  • Review the common back-to-back swap structure and current pricing alternatives
  • Learn about the benefits as well as considerations of using back-to-back swaps
  • Identify what types of loan opportunities are a good fit for swaps
  • Discuss how swap exposure is calculated, monitored and mitigated

Ben Lewis
Managing Director
Chatham Financial​