More information

• What is interest rate risk and how can it impact me?

  Interest rate risk is a major concern for both institutional and corporate clients. A rise in interest rates can substantially increase loan interest payments, thus possibly incurring material losses to an organization. On the other hand, money managers with floating rate investments may suffer a decrease in incoming cash flows, as a result of a decrease in interest rates.

   

• How can you help me?

  We work with our clients to help them hedge their exposure to interest rate risk with the use of appropriate tools and techniques. For instance, using suitable instruments we can offer our corporate clients the possibility to fix their floating rate exposure, and consequently effectively convert their floating rate liabilities into fixed ones. Likewise, similar approaches may be used by fixed income investors to convert floating coupon payments into fixed income streams.

• Can you list a few such instruments?

  Examples of such products include:

  • Interest Rate Swaps
  • Interest Rate Caps
  • Interest Rate Collars.