Interest rate management

Certainty to plan in every market environment

When interest rates change, plans and projections start to falter. This risk can be reduced with our interest rate management tools according to your needs and sustainability criteria – whether it is a full hedge you are looking for, or a worst-case scenario that you would like to cover.
  • Hedge against interest rate fluctuations
  • Increase risk-bearing capacity
  • Improve certainty to plan

Interest rate management

At a glance

Our interest rate management toolbox
  • Swap / swap with a floor
    A payer swap protects against rising interest rates. In combination with a floor, any negative interest payments to be made are excluded.
  • Cap
    A cap installs an upper interest rate limit, protecting you from a strong increase in rates while allowing you to participate in falling money market rates.
  • Swaption
    Swaptions allow you to hedge fixed or floating interest rates for future loans.
  • Combinations and currency products
    Our combinations and currency products in the interest rate derivatives area enable us to find the right solution for your individual needs and market expectations.

How you can benefit from our interest rate management

Make your calculation add up

Use our long-standing experience in active interest rate management for tailor-made hedges and more certainty to help you plan ahead.

Actively managing risks

Interest rate derivatives allow you to actively manage interest rate risks in euros or other currencies, which could arise from existing loans, for example.

Responding to market changes

Our solutions for different market situations enable you to react to expected rate increases by switching variable into fixed interest payments, or putting a cap on them.

Hedging future loans

If you are looking for interest rate certainty for future loans, you can secure an interest rate even if it is not yet clear whether you actually need the loan, or what amount you will need.

Interest rate management and its advantages

There are two advantages to interest rate hedges: active interest rate management and better risk-bearing capacity.

Active interest rate management

  • For more flexibility than a fixed rate loan can offer, you can use derivatives to separate loan and interest rate management.
  • The longer the term of the loan, the more important it is to be able to react (and adapt) to potential changes in the market.
  • Early termination of a derivative is usually cheaper than early termination of a fixed rate loan.
  • Limit your interest expenses and participate in falling interest rates at the same time.

Better risk-bearing capacity

  • Hedging market price risks not only improves the ability to plan a loan’s cash flows, but also your company's risk-bearing capacity and sustained success.
  • Corporate results become less volatile.
  • There is a positive impact on KPIs and covenant compliance.

Your contact

Our experts will be happy to advise you on developing your individual risk management strategy.
Jochen Maechtlinger

Head of Financial Markets Sales FX/IR Large Corporates