Tax-exempt organizations are particularly vulnerable to changes in interest rates. Inflation can increase borrowing costs, creating financial difficulties for organizations largely dependent on donations to continue mission-critical programs.
To mitigate this risk, count on the expertise and resources of our interest rate risk management specialists. We’ll work with you to identify your specific interest rate concerns, then recommend and execute customized hedging strategies that can help you:
- Protect against changes in tax-exempt interest rates.
- Achieve an optimal mix of floating- and fixed-rate debt.
- Manage potential tax and basis risks in your tax-exempt debt portfolio.
- Reduce the impact of interest rate uncertainty in your capital planning.
These solutions may include tax-exempt products such as SIFMA and percentage of LIBOR-based swaps, caps and collars.