Interest rate hedging, commonly used/required in conjunction with variable rate debt, helps borrowers protect – or hedge – against interest rate volatility. Borrowers have various alternatives when exploring interest rate hedging solutions including: caps, collars, swaps, cancellable swaps, forward swaps, swaptions.
Interest rate hedges are very complex to model, price and value but our team of industry specialists at our sister company, SOFR With Ease™, is not only here to help you understand all of the different options available but also guide you through any exposure you might have with the transition from LIBOR. With over 40 years of experience in derivatives and hedging services, you’ll have a trusted expert on your side.
Use the LIBOR to SOFR Conversion Calculator to visualize any exposure between your Loan and respective Hedge product (Swap/Cap).Conversion calculator
Use the Quick Cap Calculator to get an estimate of a current Rate Cap at LIBOR and its current SOFR spread adjustment after cessation of LIBOR.Cap valuation calculator