Tailored interest rate hedges

In addition to traditional interest rate caps and interest rate swaps, interest rate hedges can be tailored to each customer.

Tailored interest rate hedges Terms and conditions Tailored interest rate hedges

Hedge options for different needs

Besides the extent and nature of the interest rate risk, the selection of a hedge is affected by expected interest rate movements and the market situation. Based on these considerations, interest rate hedges may include special terms which have an influence on the interest payable. There are also other types of contracts, such as a contract where the hedge changes into another type of hedge after a certain period of time.

Your benefits

  • The market view and market situation are taken into account in hedging.
  • Example of a tailored hedge: the customer receives a discount on the interest expenses during the first years of the hedge.

Remember these

The risk of a tailored interest rate hedge depends on the chosen alternative. See the risks of the interest rate swap as a good example of the general risks of separate interest rate hedges.

Terms and conditions

Terms and Conditions

Purchasing the products requires a customer relationship and a general agreement on derivatives with Nordea. Please contact our specialists for further information. We will be happy to help.

Interest rate hedging


Interest rate fluctuations generate a risk

You can hedge against the risk with different hedging products.


Hedge against rising interest rates

Companies can choose among different interest rate hedging products available for various needs.