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Interest rate hedging

Make your company’s cash flows more predictable by hedging your debt servicing costs against unfavourable changes in interest rates. Hedging against higher interest rates forms a part of a company’s risk management strategy, helping you improve the predictability of your business operations.

Benefits for your company:

  • Reduce the effect of uncertainty related to interest expenses and unfavourable movements in interest rates on your business and its profitability
  • Make your cash flow more predictable

The more variable-rate debt your company has, the higher the risk involved in interest rate fluctuations. We will help your company find the optimal interest rate hedging solution to manage its risks and costs. We will take a holistic view of your loan portfolio, and when your company’s situation changes, we will help you find new solutions.

You can manage your company’s interest rate risk with different solutions, the most typical of which are the interest rate swap, interest rate cap and interest rate collar. These hedges will be adjusted to suit your company’s profile, taking into account the market situation. 

Interest rate swap

The variable rate on your company’s loan can be changed to a fixed rate, or vice versa, using an interest rate swap. Separate from the loan, a swap is an agreement that allows you to hedge against a rise in interest rates. An interest rate swap can be used to hedge your company’s entire loan portfolio or individual loans, regardless of the lender.

Korkokatto

Yrityksesi voi varmistaa, että lainan viitekorko ei nouse yli tietyn tason korkotason noustessa, mutta alenee viitekoron laskiessa korkokaton avulla. Korkokatosta maksetaan erillinen suojausmaksu, joka määräytyy perustuen korkokaton voimassaoloaikaan, tasoon ja lainan määrään. 

Korkoputki

Yrityksesi voi varmistaa, että lainan viitekorko pysyy ennalta sovittujen korkotasojen sisällä sovitun ajan korkoputken avulla. Korkoputken alaraja varmistaa viitekoron minimitason, eli jonka alle viitekorko ei laske. Korkoputken yläraja toimii kuten korkokatto varmistaen viitekoron maksimitason, eli jonka yli viitekorko ei nouse. Korkoputkessa ei ole erillistä suojausmaksua.

We will help you manage your interest rate risks

Call us on+ 358 9 369 50460 Opens new window