Special Products/Financial Engineering

Cain Brothers' structured products group provides market expertise and support to our clients in the areas of analysis and application of interest rate managment tools, reinvestment of bond proceeds, escrow optimization strategies, and the analysis and optimization of the asset-liability relationship on the balance sheet.

The special products team works in consultation with our relationship bankers on every capital markets transaction in which the firm is involved as an underwriter or advisor. Reinvestment solutions that are analyzed and structured by this group include the following:

	Escrow structuring/restructuring,
	Investment agreements and other forms of bond proceeds investment,
	Debt Service Reserve Fund put agreements, and
	Debt Service Deposit Agreements.

Among the interest rate management products that might be considered for our clients on a particular transaction are the following:

Interest rate swap structures, utilizing a variety of indices as a basis, include:

Interest Rate Caps, Floors, and Collars (and combinations thereof).

In addition, Cain Brothers' special products group has pioneered the application of a proprietary structure, utilizing outstanding callable bonds and total return swaps to save our clients tens of millions of dollars by restructuring debt through a synthetic refunding.

Cain Brothers' special product bankers analyze and recommend appropriate financial products for the clients' consideration. The use of and business terms of these products have numerous implications for a client's financial and strategic profile. As a result, recommendations are based upon a variety of factors including a client's financial status, risk profile, and strategic goals; current and anticipated market conditions; the impact of tax status of the client; and potential counterparties. This collaborative process enables Cain Brothers to deliver custom-tailored solution-driven transaction structures to our clients.

Cain Brothers offers to its clients CBFiRM, which is a unique internet-based financial instrument management and reporting tool. CBFiRM was designed specifically for hospitals and health systems and takes into account the special requirements of nonprofit providers, their regulatory and reporting environments, and the tax-exempt financial markets. With secure online access, clients can use CBFiRM to integrate and optimize their asset and liability portfolios. CBFiRM provides a rich set of up-to-the-minute market and financial data; services and reports; and support for portfolio and risk management analysis, hedge management, FAS 133 reporting, and transaction capture services.

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