A CFO that was trying to time the market before executing an interest rate swap waited too long and ended up costing the company a significant amount of money, a mistake that could have been avoided by using a tool the company’s banking partner had available. But the CFO never took advantage of it.
“Unfortunately, in this particular case, the market shifted materially,” said Bita Ardalan, managing director and head of commercial banking at Union Bank, whose company, Ardalan said, had tools the CFO could have used to create interest rate certainty. “It ended up costing the company hundreds of thousands of dollars in higher interest expense over the life of a particular loan.”
