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Interest Rate Hedging

Unexpected movements in interest rates can drive up financing costs and affect your bottom line. Protect yourself from the adverse effects of rate changes with customized risk management solutions and advice. 

Features & Benefits

Your cash flow and financing needs are unique. That's why our Interest Rate Risk Management Advisors will work closely with you to understand your rate exposure and help you hedge against negative impacts to future funding costs, using swaps and other market instruments.

Protect Yourself From Rate Fluctuations

Interest rates are always on the move — make sure you're protected from the next rise or fall.

 

Lock in Favorable Rates

Instead of a conventional, fixed-rate loan, interest rate swaps may allow you to lock in a more favorable rate that will start on a date some time in the future. 

Potential for a Positive Return

Certain interest rate hedging products, such as interest rate swaps, offer the potential for a positive return.

 

Find the Right Mix of Debt

Create the most effective fixed-floating debt mix and term structures without the need for multiple loans.

 


Hedging Solutions

It's never a one-size-fits-all solution. We'll leverage the following market instruments to create a customized plan for you and your business.

Interest Rate Swaps

Allows swap participants to fix the rate on a floating-rate loan over a specific period of time.

 

Interest Rate Caps

Allow a borrower to cap the maximum interest rate due on a floating-rate debt obligation in exchange for an up-front premium.

Interest Rate Collars

Create a “maximum” and “minimum" interest rate on a floating-rate debt obligation for a specific period of time.


Why City National Bank?

City National is fueled by strong client relationships, and our Interest Rate Risk Management team is no different. We want to fully understand your cash flow requirements, financing needs and interest rate exposure so we can help you protect your bottom line.



Manage your interest rate risk.


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Foreign Exchange Services

Manage your foreign currency exposure with hedging solutions and global market insights from our Foreign Exchange Advisors. 

1. Subject to credit approval and certain eligibility requirements.