Interest Rate risk

  • Exposure to interest rate risks We work with our clients to help them hedge their exposure to interest rate risk with the use of appropriate tools and techniques.
  • Fixed income streams We enable fixed income investors to convert floating rate coupon payments into fixed income streams.

More information

  • Interest rate risk is a major concern for both institutional and corporate clients. A rise in interest rates can substantially increase loan interest payments, thus possibly incurring material losses to an organization. On the other hand, money managers with floating rate investments may suffer a decrease in incoming cash flows, as a result of a decrease in interest rates.

     

  • We work with our clients to help them hedge their exposure to interest rate risk with the use of appropriate tools and techniques. For instance, using suitable instruments we can offer our corporate clients the possibility to fix their floating rate exposure, and consequently effectively convert their floating rate liabilities into fixed ones. Likewise, similar approaches may be used by fixed income investors to convert floating coupon payments into fixed income streams.

  • Examples of such products include:

    • Interest Rate Swaps
    • Interest Rate Caps
    • Interest Rate Collars.

Contact us

Our Management team

Bank of Cyprus uses cookies on this website aiming to improve your online experience. To accept cookies continue browsing as normal.