Interest Rate Risk Management

Development, implementation and monitoring of appropriate strategies including currency and fixed/floating interest rate mix.

Interest rate risk is risk to the earnings or market value of a company due to uncertain future interest rates.

From a business perspective, movements in interest rates can have a significant impact on company performance. This is true whether the business is cash rich (i.e. a depositor) or relies on bank funding (i.e. a borrower). In both situations, finance managers can manage the interest rate risk to safeguard the company from an adverse move in rates.

For borrowers, management of an interest rate risk can:

Create certainty of debt repayments
Ensure accurate forecasting and budgeting
Safeguard profitability (or competitiveness)
Eliminate uncertainty from long term projects
Protect against rising interest rates.

At Treasury Solutions, we offer a comprehensive suite of interest rate risk services and professional guidance that helps companies improve their own risk management practices.

Other Support Services

Pre-hedging strategies for investment or acquisition projects
Development of hedging strategies as required under bank funding agreements for refinancing and/or acquisitions
Verification of the calculation of interest rate bills through our knowledge of market convention and access to data from Reuters
Expert witness in litigation cases re overcharging by banks.

Contact us if you require more information on this topic

What Our Clients Say

We are a large company with a turnover of c.€250m. Initially we used Treasury Solutions to review our treasury policy and procedures to ensure that they were appropriate to an organisation of our size and complexity. Since then the group refunded its entire debt as part of a major acquisition and the advice we received in relation to strategy, bank covenants and facility letters was invaluable. TS have continued to support us through the current financial crisis with pragmatic and independent advice.

CFO,, Large Company

I have used Treasury Solutions since 2005 for a variety of roles - from the creation of a top class Treasury Policy that is tangible and meaningful, to a review of our treasury function from an Audit and Best Practice viewpoint, to adhoc day-to-day advice and views (on) what is happening in the re-financing market. Reliable, consistent and customer-focused; they are very much a part of my decision making process.

CFO,, Large PLC and Private Company

Since the downturn, I have used Treasury Solutions as a sounding board and to watch my back in terms of banking covenants and funding strategies. At all times, I have found them to be approachable, plain speakers and experts in their area. I think their fees could have been the best spent money that our company has spent in the last few years.

CFO,, Major Private Company

We used Treasury Solutions to assist us with the development of a foreign exchange policy. Their suggestions were practical and well communicated. They understood the subject thoroughly and we will use them again in the future should the need arise.

FC, , Private Irish Company with turnover of €160m

We are an Irish owned multinational company with a turnover in the region of €350m and 2,000 staff. Our treasury function is very complex with a large number of FX exposures and funding arrangements. Treasury Solutions has given invaluable support on a wide range of matters from strategic policy to day-to-day advice. Independent, professional and thoroughly competent.

Group Finance Director,, Large Private Company

John Finn of Treasury Solutions continues to be an invaluable help to us as a small business in our long-term financial planning and in our dealings with financial institutions. In most recent times, his experience and up-to-date knowledge of the financial scene allowed us to be confident of our case in prolonged and difficult negotiations with our main banking partner. Encouraged by John’s tenacity and advice we achieved a favourable long-term result, which will allow us to get back to focusing fully on the running and developing of our business.

Ruairí & Marie-Thérèse de Blacam,, Inis Meáin Rest. & Suites