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.
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.
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.
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.