One of the key advantages of iDealTrade is that it allows you to be a market maker when you have specific requirements for your funding. Rather than accepting what is already available on the market or locking into terms that may not entirely suit your needs, you can ask for exactly the deal that you are looking for and work from there. The recent success that a District Council found on the platform serves as a great example.
The Council managed to fill their borrowing requirement of nearly £40 million over a period of two weeks. This was coordinated across 10 separate deals with 7 different counterparties at rates that suited both borrower and the investors.
By taking advantage of the flexibility offered on the platform, the council structured each trade at varying maturities from 3 months to a year so that they were able to achieve a maturity and repayment structure that would spread refinancing risk over the medium term. The order was managed over a two-week period, with rates adjusted incrementally to ensure competitive levels.
A bit of forward planning and a clear idea of what they were after meant the Council easily arranged this borrowing at attractive short-term rates. The authority took advantage of the iDealTrade “partial order fill” functionality, allowing the council to aggregate demand across several authorities. The automated process enabled the busy finance team to raise funding with minimum fuss, with automated email alerts provided as loans were confirmed. The Council also benefitted from low transaction fees, at a standard 0.03%, providing welcome savings at a time when local authority budgets are stretched.
The iDealTrade team are always available to offer guidance or advice on how you can make the platform work best for you. Whether that be on how to structure deals to create an appropriate maturity profile for your borrowing, when to place deals or on suggested rates. If you have any questions or would like guidance on using the platform please get in touch with the team by emailing email@example.com.
Setting Rates in the 'Local to Local' Lending Market