Mitigate interest rate uncertainty
There is inherent interest expense volatility associated with floating rate debt facilities. Companies may look to mitigate the risks deriving from floating rate exposures. With years of experience, our derivatives specialists can help identify your interest rate exposure and structure tailored solutions based on company objectives and risk appetite.
Interest rate products
We work with you to customize strategies and solutions to mitigate the risk of interest rate uncertainty and efficiently manage funding costs.
Manage your borrowing costs with the help of our risk management team.
Leverage our extensive experience, research and trading capabilities to understand the potential impact of interest rates on your bottom line and develop customized hedging solutions that help you:
- Mitigate the impact of interest rates on cash flows and profitability.
- Create rate certainty for financial budgeting.
- Achieve a desired mix of fixed-to-floating rate debt in your capital structure.
- Separate the financing decision from the hedging decision.
- Be opportunistic and take advantage of current, attractive market conditions.
Create tailored, unique solutions to meet your specific risk profile and risk management objectives, through:
- Interest rate swaps
- Caps
- Collars
- Floors
- Forward rate agreements
- Cancellable strategies
- Step-up Coupon Swaps
Interest rate hedge products are highly flexible and can be restructured to appropriately address an evolving capital structure, changing risk appetites, or to take advantage of attractive market conditions.
Our interest rate risk management specialists can assist you in identifying opportunities to restructure existing hedge programs that take advantage of the prevailing economic environment to potentially lower existing interest rates and achieve immediate interest expense savings.
Flexible hedge products that can be tailored to meet your specific risk profile and risk management objectives include:
- Interest rate swaps
- Caps
- Collars
- Floors
- Forward rate agreements
- Cancellable options
A forward starting hedge allows a company to take advantage of the current rate environment to secure future interest rate certainty, typically to:
- Address an anticipated refinancing due to the impending maturity of the underlying debt
- Address maturing hedges to mitigate the rollover risk associated with reverting back to a floating rate liability
- Hedge anticipated debt and secure funding costs today ahead of the closing of the obligation, which may be in a higher rate environment
Create tailored, unique solutions to meet your specific risk profile and risk management objective, through:
- Interest rate swaps
- Caps
- Collars
- Floors
- Cancellable options
Ready to take the next step? Get in touch with our team.
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“Citizens” is the marketing name for the business of Citizens Financial Group, Inc. (“CFG”) and its subsidiaries. “Citizens Capital Markets & Advisory” is the marketing name for the investment banking, research, sales, and trading activities of our institutional broker-dealer, Citizens JMP Securities, LLC (“CJMPS”), Member FINRA and SIPC (See FINRA BrokerCheck and SIPC.org). Securities products and services are offered to institutional clients through CJMPS. (CJMPS disclosures and CJMP Form CRS). Banking products and services are offered through Citizens Bank, N.A., Member FDIC. Citizens Valuation Services is a business division of Willamette Management Associates, Inc. (a wholly owned subsidiary of CFG).
Securities and investment products are subject to risk, including principal amount invested and are: NOT FDIC INSURED · NOT BANK GUARANTEED · MAY LOSE VALUE
