Follow our analysts
Interest rate swap for investments
An interest rate hedge for an investment suits investors who want to have corporate bonds or other fixed income investments in their portfolios but who want to prevent the value of their portfolios from falling due to rising interest rates.
How does an interest rate hedge for an investment work?
When rising interest rates decrease the value of fixed income investments, the value of the hedge will increase. You can hedge all fixed income investments in your portfolio or only a part of them.
- An interest rate hedge helps limit or remove the interest rate risk involved in investments.
- The hedge is separate from investments, so it can be made or cancelled any time.
- The hedge will be tailored for each portfolio.
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.
Investment risk management
A risk policy is a tool for setting targets and practices for market risk management.
Take a look at our topical and wide selection.