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Welcome, everyone, to Part 1, Episode 21 of Offshoot. My guest today is Jim Griffin, the Managing Director and Co-Founder of Derivative Logic, a firm he started with his partner, Rex Evans, over 11 years ago. Before this recording, I didn’t have any personal connection to Jim, but I’ve consistently seen opportunities for operators to reduce risk through understanding and utilizing hedges and derivatives. I strongly suspected that having an expert like Jim on the show would be valuable for both you, the listener, and for me.
I think you’ll agree that Jim delivers.
Prior to his 11 years at Derivative Logic, Jim traded interest rates, currency, and commodity derivatives at UBS, Wells Fargo, Wachovia, and Bank of Tokyo-Mitsubishi. He holds an MBA in Finance from the University of Southern California and a BSBA in Finance and International Economics from the University of Arizona. His mission is to help clients achieve their investment goals by applying macroeconomic analysis, derivative products, structuring, and hedging strategies. He works with a broad range of institutions, including public entities, real estate finance companies, ultra-high-net-worth individuals, family offices, money managers, and tech companies.
We dive pretty deep into these topics, as I see hedging as a significant blind spot for many operators. With just a bit of awareness—some of which I hope you can gain from this episode—I think you’ll see how much money is being left on the table and how risk can be compartmentalized in unique ways.
In this episode, we cover topics such as:
- Providing clients with valuable technology to streamline your sales process and preserve internal resources
- How experience is a true differentiator in knowledge-based industries
- The impact of regulatory overlays and compliance on value creation at larger institutions
- Creative solutions that borrowers can use in response to lender-required rate caps
- The current lack of distress in the real estate market
- How a risk management document can help middle-market operators analyze and manage their cash flow collections
- Why both vision and execution are essential for success
- Why bank swaps are the most profitable product in a bank’s lineup, and how borrowers can gain transparency into the premiums they’re paying
- The inefficiencies in execution that are prevalent in the real estate industry
- Understanding fixed-rate loans by examining the lender’s creditworthiness and their internal cost of funds, plus the added spreads
- How integrity and relationships are central to Jim’s practice
