Interest Rate Derivatives
Manage your company’s interest rate exposure.

Features
Interest Rate Derivatives can provide flexibility to create the interest rate profile you want for your company.
Types of Derivatives

Interest Rate Swaps
An interest rate swap allows your company to convert a floating rate loan into one that is essentially fixed-rate to protect against rising interest rates.
Advantages of interest rate swaps:
- Multiple structures available
- Terms tailored to match underlying loan(s)
- Predictable execution

Interest Rate Caps
Interest rate caps protect your company against rising interest rates by capping the interest rate on your floating rate loan.
Advantages of interest rate caps:
- A fixed cost of insurance against a rise in rates while retaining floating rate debt provides benefit from lower rates
- Flexible risk management and customization
- Can be sold at current market value if the underlying loan is repaid or the protection is no longer needed

Forward Starting Interest Rate Swaps
A forward starting interest rate swap is similar to a regular interest rate swap but instead of starting today, it becomes effective at a predetermined future date chosen by you.
Advantages of forward starting interest rate swaps:
- Lock in a rate today for an expected future loan or loan renewal.
- Provides rate protection on the permanent financing piece of current construction projects.
- Flexible risk management and customization. Specify the effective date and amount of the forward starting swap to suit your company’s risk tolerance and interest rate expectations.
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