A Protection Buyer's Checklist

	Macro-Managers	The CIRM
Business type	Financial supermarket	Specialized professional office
Role	Lender Agent	Borrower’s advisor
Guiding principle	Return of capital	Return on capital
Perspective	Transactional	Strategic
Point of engagement	After loan is negotiated	Negotiation ideally
Oversight	Periodic, discrete	Continuous, integral
Business objective	Minimize Lending Risk, Up front	Minimize borrowing expense, end of day
Decisions	Few, at fixed points	Many, at best points
Tool of risk management	Offsetting positions	Sequenced, timely planned moves
Philosophy	“Trade”	“Invest”
Event timing	Tied to contract dates	Open to market opportunities
Cash flow	Restricted	Maximized
Products Services	Hedges, swaps, collars —	— Counsel, management
Home	Wall Street	Real World
Borrower’s outcome	Zero sum, plus expenses	Best economic interest

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The Corporation for Interest Rate Management

175 N. Franklin, Suite 205 Chicago, IL 60606