Strategies and solutions to manage your company’s interest rate exposure

 

Managing interest rate risk is an essential part of your company’s financial strategy.   That’s why our Rate Derivative Specialists partner with you to understand the risks you face and provide a wide range of services that help you expand your financing options and diversify interest rate exposure. 


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We can help your business: 

 
  • Mitigate risk from unexpected rate movements
  • Flexibility: Borrowers may choose to fix 75% of their debt and let 25% float with market interest rates. Alternatively, borrowers can lock in 50% today, and 50% a year from now.
  • Ability to Lock in Future Rate: The interest rate swap allows borrowers to lock in a future fixed rate
  • Prepayment: Interest rate products can be prepaid at any time at their economic value. This make-whole provision is bilateral, meaning the settlement can be positive or negative depending on the current market. Termination for interest rate products is generally favorable versus a fixed rate loan.
  • Certainty: The swap will reduce the Borrower’s cash flow variation caused by changes in interest rates and improve the accuracy of cash flow projections.
  • No Fees: Most products allow the Borrower to lock in rates without any cash outlay.
  • Easy to Modify: Since they are “stand-alone” contracts, swaps can be restructured or modified quickly and simply without disrupting any underlying borrowings. Restructuring or amending a traditional fixed rate loan often forces a refinancing or costly re-documentation.

 

Solutions tailored to your needs:

 
  • Swaps
  • Caps/Floors
  • Collars
  • Swaptions
  • Exotic swaps/options
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Disclosure:
This and any other information or communication provided by Valley National Bank ("Valley") relating to interest rate, energy or other swap or derivatives products and services, whether written or oral, is not intended as (and shall not be deemed) investment advice or a recommendation to buy or sell any currency or other investment or instrument, nor shall it be deemed an assurance or guarantee as to the results or expected results of any transaction. For further detail regarding the risks and characteristics of swap and derivatives trading products, contact your Interest Rate Derivative Specialist and request a copy of Valley's General Statement of Characteristics and Risks of OTC Interest Rate Swap Products or the General Statement of Characteristics and Risks of OTC Energy Commodity Swap Products, as applicable.