RM2 accurately forecasts USD/CHF to help a large Real Estate Firm secure lower interest rates
The Challenge
A large Real Estate Firm sought a loan of $100M, and wanted to take advantage of the interest rates which were lower in Switzerland than they were in the USA. While working with a large international bank, the Firm grew skeptical of the bank’s research and recommendations, and contacted Valyrian for pricing guidance. USD/CHF timing and price were critical for an optimal financial outcome.
The Solution
Since implementing RM2 software:
- RM2 correctly predicted USD/CHF would fall from inception of the client relationship from $0.94 USD/CHF to $0.84 for optimal execution.
- RM2 forecast resulted in a $12.47MM buffer for the client, 10.41% in downside protection.
- Avoided two margin calls of $2.0MM, resulting in an additional $4MM in savings.
- Total grew to $16.47MM in downside protection and savings because of proper timing and execution.
