Interest Rate Risk Management

Interest rate exposure arises in many ways and HSBC can assist you in managing your interest risk exposures so as to minimise the impact of market volatility on the company.

Our Risk Management Advisory executives can help you to:

• Understand your exposure
• Understand the products
• Develop a strategy
• Implement the strategy

Without a clear understanding of your interest rate exposure you can be running significant risks. Our Risk Management Advisory executives will help you to analyse your business and the balance sheet structure of the company to quantify the net exposures in terms of interest rates, foreign exchange, mismatch in cash flows, etc.

Once the exposures have been identified, we will help you develop an appreciation of the range of products available to manage such exposure. Based on the interest view and risk appetite of the company, hedging strategies are then tailor-made to suit the company's requirements.

An interest rate swap is an instrument for swapping the rate of interest you pay on a loan or receive on a deposit for example from a floating rate of interest to a fixed rate - in an agreed amount, for a specified period of time.