Interest Rate Hedging (2024)

Manage Uncertainty

Variable rate loans can create uncertainty and make financial planning difficult. To create more predictability with cash flow, consider the benefits of Interest Rate Hedging.This flexible tool allows companies protection from rising rates and loan payments on variable rate credit and offers customized solutions that consider the unique financial needs of each client, with zero upfront cost.

A Sophisticated Solution:

An Interest Rate Hedge, or Swap, is a financial solution that allows qualified loan customers to swap a variable interest rate for a fixed rate over a defined period of time, increasing the predictability of cash flow. In addition, more complex structures such as forward starting swaps, caps and collars, etc. are available to manage interest rate risk.

Dedicated Risk Management Specialists:

Our Interest Rate Risk Management specialist will help to determine if Interest Rate Hedging is right for you by analyzing your current loans and cash flows, and will develop a projection of future credit needs. You'll then receive a customized strategy document that illustrates how Interest Rate Hedging stabilized your interest expense and mitigate the risk to your organization.

Explore the Possibilities:

Discuss Interest Rate Hedging and other risk management solutions from FNB's Interest Rate Risk Management specialists.

Key Features:

• Protection from rising rates
• More predictability with cash flows
• Customized solutions
• No upfront cost