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Does your client have a structured collar?

If so, it will undoubtedly be hurting, says Chris Makin.

I have worked as an expert on cases where clients have paid interest of 9% or more on fully secured lending, where businesses have gone into administration or liquidation, and where at the very least clients have suffered extreme stress and a huge loss in income and quality of life.

A structured collar is a sophisticated form of Interest Rate Swap Agreement (IRSA) regularly used by high financiers in Canary Wharf, but from about 2001 up to 31 January 2013 (the latter date is significant) sold by major banks to small and medium sized enterprises (SMEs). And that’s where the trouble begins.