Mis-pricing of Cancelled IRHPs

Companies who have already unwound hedges, such as interest rate swaps, may have over-paid to do so, i.e. the Break Cost may have been excessive.

Often, the provider of the hedge is contractually bound to unwind the hedge at ‘market’ prices or at a cost that it has suffered as a result of the early cancellation.  However, in our experience the company often pays far more.

AHV can analyse the Break Cost and produce an expert report which can then be used to reclaim the excess Break Cost.  It is likely to be the case that the provider of the hedge will argue the price was consistent with its contractual obligations.  An intimate knowledge of the products and their pricing techniques allows AHV to argue the case effectively.  A saving of  approximately 15% to 20% can be achieved