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

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