Hedging interest rate risks

All companies are subject to interest rate risk: an unfavourable market trend could prove costly for your cash position.
We will evaluate your needs precisely in order to propose ways to manage your risks.
Irrespective of whether you are a lender or a borrower, we will ensure instant and competitive quotes.

Simple techniques

We place a broad range of tools at your disposal, the most common of which are:

  • Interest rate swaps: an agreement where different interest rate cash flows are swapped (generally floating versus fixed rate). Setting up a swap does not require changes to be made to the credit contracts that serve as a support. No renegotiation, no early redemption to be anticipated. It matches the structure of your debt (amortisement, floating payments, etc.).
  • Interest rate caps: a guarantee agreement where, against payment of a premium, you are reimbursed in the event a floating rate ceiling you determine is crossed. You receive a payment that compensates you for part or all of the additional interest expense generated by the observed increase in rates. If there is no such increase, the guarantee agreement is not activated, and you pay your interest at floating rates as normal.
  • Interest rate collars: guarantees a maximum borrowing rate (cap) and a minimum interest rate (floor). In the event the interest rate cap is crossed, you receive a payment for the difference between the floating rate observed and the ceiling. In the event the interest rate floor is crossed, you pay the difference between the floating rate observed and the floor.You thus set your debt between these two levels.

Customised solutions

An accurate analysis of your needs is indispensable.. The quality of our services does not rely solely on price competitiveness and the quality of quotes. It is important to master the strategies proposed and measure the range of possible and unexpected trends.
We will advise you in your risk management, and propose made-to-measure strategies.

  • forward start swaps
  • amortising swaps
  • interest rate options(cap spread, swaption, double-strike swaps, etc.)