Hedging Fixed-Rate Loans

  • Become more competitive by making longer term fixed-rate loans without taking the associated interest rate risk.

  • Book a fixed-rate loan with your customer and concurrently enter into an interest rate swap.

  • Synthetically convert the fixed-rate loan into a floating rate loan.

  • Mitigate the interest rate risk of the fixed-rate loan.


Fixed Rate Loan with an Interest Rate Swap

Fixed rate loan with an interest rate swap

Learn More about Derivative Solutions for Financial Institutions