With the spreads being much wider than they used to be, you need tools to negotiate better with your banks.
When conducting transactions, the trader of your counterparty bank will try to take the highest possible sales margin he can get away with. This is common practice as pricing mechanisms are extremely non-transparent to dealing room outsiders and banks are under constant pressure to increase revenues. Most of our clients do not know that the inequality of knowledge cost them dearly. They are extremely surprised, if not shocked, when they find out how much the bank has made on the transaction. The ones asking two or three banks upfront to provide them a quote, are getting a sense of false security. Often margins are increased again quickly when actually closing the deal.
We have the same systems, pricing models and people (dealing room insiders) as the major banks. We can give you the real time market value and inter banking rates of all treasury products (over the counter – OTC – as well as structured products) at the moment of execution. Having us on a second phone line telling you what the banks’ sales margin is, will enable you to negotiate a much better pricing when conducting a treasury transaction. This is the best way to know exactly how you are being serviced by your banks. Especially on Interest Rate Swaps (IRS) and FX options the saving potential is enormous.
We can also tell you how much your bank has earned on one of the treasury transactions you have conducted in the past. This will give you a good understanding of the savings potential you have on new transactions.
For a back pricing sample click here or click the button on the right for a one-time free margin check on one of your own transactions.