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Interest Rate Risk
Management Solutions

You can help your clients protect their business through a range of Interest Rate Risk Management solutions.

These solutions remove volatility by ensuring business earnings are protected against the negative impact of interest rate fluctuations.

The right strategy depends on a client’s specific needs, their business requirements and their view on how interest rates might move during the term of their loan. A Global Markets Specialist will assess the client needs and provide a solution mix that offers a known cost of funding with varying degrees of flexibility, as determined by the client needs.

Click each hotspot to learn more.

Low Flexibility and High Certainty

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Fixed rate solutions enable a borrower to “lock in” an agreed fixed rate of interest and so provide a borrower with interest cost certainty. Because the rate is fixed, borrowers will pay that rate even if variable rates fall below the agreed fixed rate.

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Moderate Flexibility and Moderate Certainty

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These solutions can provide a moderate level of certainty of interest costs and allow participation if variable interest rates fall. The client may be required to pay the Bank a premium (or a fee).

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Highly Flexible & Low Certainty

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Loans with variable interest rates provide clients with a high degree of flexibility to repay additional amounts of debt. The client is likely to have lower repayments if variable interest rates fall, however, they offer no protection from rising variable interest rates.

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