Debt Structure Analysis and Advice

Fundamental to effective debt management is the selection of the most appropriate debt structure(s) to an individual organisation’s specific requirements.

This involves the assessment and analysis of alternate debt portfolios and entails the evaluation of the cost and risk characteristics of alternate debt structures and the effective communication of the risk/cost trade-off to enable the selection of a debt portfolio that meets an acceptable risk tolerance and individual business requirements.

WATC’s service offering includes:

  • development of stochastic interest rate models
  • development of appropriate risk and return metrics
  • specialist knowledge of interest rate risk management techniques
  • analysis of all forms of financial risk and modelling results
  • evaluation of client business requirements
  • assisting clients in understanding, quantifying and articulating their risk appetite
  • development of equilibrium (rather than arbitrage pricing) risk models
  • development of appropriate risk metrics for long-run analysis of debt portfolio structures
  • interest cost modelling and providing clients with estimates of projected interest costs and potential variation in estimates for budgetary planning
  • evaluation of alternate active debt management strategies.