P4

Hedging Interest Rate Risk Using Interest Rate Swap

Hedging Interest Rate Risk Using Interest Rate Swap Interest rate swaps allow companies to exchange interest payments on an agreed

Hedging Interest Rate Risk Using Caps, Floors and Collars Interest rate cap: A cap involves using interest rate options to set

Hedging Interest Rate Risk Using Interest rate option Interest rate options allow businesses to protect themselves against adverse interest rate

Hedging Interest Rate Risk Using Interest Rate Future Futures contracts are of fixed sizes and for given durations. They give

Hedging Interest Rate Risk Using Forward Rate Agreement (FRA) These arrangements effectively allow a business to borrow or deposit funds

Hedging Interest Rate Risk Using Asset and Liability Management This relates to the periods or durations for which loans (liabilities)

Hedging Interest Rate Risk Using Matching When taking out a loan or depositing money, businesses will often have a choice

Hedging Interest Rate using Smoothing When taking out a loan or depositing money, businesses will often have a choice of

Hedging foreign currency loan using currency swap A currency swap is an agreement in which two parties exchange the principal