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Interest Rate Risk Management

Our dedicated team of financial craftsmen offers interest rate risk management solutions that fit your needs.

Interest rate risk management solutions customized for you

We offer interest rate hedging services to help reduce risks caused by interest rate fluctuations for your business.

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Interest Rate Swap

Interest rate swaps are the exchange of one set of cash flows, based on interest rate specifications, for another. The most common type is the plain vanilla swap. It involves one party (fixed-rate payer) making fixed payments, and the other party (floating-rate payer) making payments dependent on the floating interest rate index. An interest rate swap can “fix” interest costs on variable-rate debt.

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Interest Rate Cap

Benefit from an attractive rate of interest on a floating loan rate while minimizing upside risk. An interest rate cap1 protects your organization against rising interest rates. Rather than fixing an agreed-upon rate of interest, caps set an upper limit on the index underlying your floating rate debt. This limit establishes a maximum cost of financing for the life of the cap agreement.

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Interest Rate Collar

Limit interest rate risk within a known range by agreeing to a cap and a minimum rate. A collar is a customized contract that combines an interest rate cap with an interest rate floor to establish a maximum range of movement for a floating interest rate index. Typically, by adding a floor, a borrower reduces or eliminates the up-front fee associated with a cap.

Ready to get started?

We offer customized solutions for risk management in areas like interest rates and foreign currency fluctuations. To get started, you can contact us based on your area of interest below, or fill out the form to send us an email. 

 

Interest Rate Risk Management Group

888-312-2265

[email protected]