Hedging Commercial Loans with IR Swaps
Find out how a Back-to-Back Swap Structure can eliminate a bank's exposure to changing interest rates
In this webcast, Martin McConnell, Banking Consultant with Provident Risk Management, reviews the key benefits that a back-to-back swap structure can bring to banks who are looking to reduce rate risk and become much more competitive.
Swaps enable a bank to:
- Earn a non-interest fee income
- Inject more creativity and flexibility into developing the right loan structure for the borrower
- Price credit based upon risk without concern over market risk or rate movements
- Reduce their reliance on wholesale funding
- Become more competitive in the lending marketplace
Looking in detail at some examples of interest rate swap transactions, McConnell identifies the advantages a swap structure can generate and best practices to overcome the challenges involved in introducing interest rate swaps into a bank's commercial lending business.
If your bank is considering a derivatives strategy, or is currently hedging against risk, but is looking for more direction and better results, then this webcast is a must-see presentation.