Gestion de la dette

Debt and investment management for corporate and local public sectors

Knowing the structure of your financing and hedging is not enough to manage them dynamically.

Knowing and managing outstanding debt

Outstanding debt is mainly comprised of different types of loans, taken out on different dates, with different maturities and different financial conditions. This diversity can complicate debt management, which should be based on a precise inventory of all financing transactions and their various clauses.

Lenders offer a full range of financing with each having benefits and hidden costs: standard loans, fixed or floating rates, capital or operating leasing, multi-index credit facilities, usually accompanied by usage or non-usage fees. This diversity is always growing in response to financial innovations, as is evident from the recent boom of disintermediated funding.

Irrespective of the type of financing, control of main clauses (e.g. maturity, interest rate) and secondary clauses (e.g. possible trade-off, early repayments, covenants) is essential to debt management, in order to optimise the cost and to minimise the risk.

Debt management: objective “risk/return”

Once the best financing option has been chosen, one of the objectives of debt management is to optimise financial costs. To do this, financial departments have several tools; they may use trade-off opportunities offered by floating-rate facilities with multiple options in order to optimise interest and fees. Depending on the case in-hand, they may also be required to restructure some loans: opt for an early repayment if cash is believed to be inadequately remunerated, or modify the amortisation conditions by shortening or extending the maturity date of the debt.

Another objective of debt management is to reduce exposure to interest rate risk. With fixed or floating rates, borrowers are exposed to fluctuating interest rates, resulting in gained or lost opportunities. The management of this risk requires appropriate distribution of different types of rate.

To efficiently manage debt, financial departments will therefore take a certain number of precautions: track the financial markets, register favourable periods, have a clear view of the proposed spread conditions, make an accurate analysis of every transaction…

Debt management solutions tailored to your needs

Centralised view of financing transactions permanently connected to the financial markets, simulation, regulatory reports, key indicators… To manage debt, Finance Active provides smart monitoring, pricing and reporting solutions, with a personalised support.

Fairways Debt and Insito solutions optimise your debt management and facilitate your decision-making, resulting in improved financial performance.

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