Risk management, 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.
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.
