After a long period of extremely low and even negative interest rates, interest rate markets are under upward pressure. If your organisation is funded based on a variable interest rate component, every 1% rate increase on a EUR 10 million loan will result in EUR 100.000 higher annual interest rate payments. The interest rate market as it stands, still offers excellent opportunites to protect your organization against a future cost increase.
Identifying a suitable interest rate hedge requires a tailor fit solution. Which instrument is suited to hedging your unique risk? An interest rate Cap? An interest rate swap? A swaption? Or perhaps a combination? All of these instruments have pro's and con's. After selecting a suitable instrument and starting negotiations with your bank, you will run in to complex and intransparant pricing of these treasury instruments. The bank's trader decides the price and will attempt to maximize the bank's profits. Margins of tens of thousands up to hundreds of thousands of euro's are sadly no exception. We can help you in selecting the best possible hedging solution and negotiate the best possible pricing for you with your bank(s), resulting in massive cost saving on your future intest rate payments.
Get in touch and discuss your situation and needs with no commitment on your end, we would enjoy the opportunity to illustrate the benefits of having an independent treasury advisor on your side.
ICC has extensive experience in managing and hedging interest rates for companies and institutions
ICC uses the same real-time pricing systems as your bank
ICC identifies your hedging possibilities before acting, you will make a well informed decision
ICC negotiates with your bank on your behalf, resulting in far better pricing
ICC documents all details, including cost benefits, in a 'Trade Recap'
ICC can independently value all types of derivative contracts for your financial statements