Tipos de interés

An interest rate coverage is a contract through which two parties agree, during a certain time, an exchange of obligations calculated on a single face value and in the same currency, to be liquidated periodically on the dates determined by the parties.

Main features

  • The fluctuation that experience interest rates over time can have a significant impact in the financial costs of all the people, both physical and legal, that they have some type of debt, shocking therefore in its financial planning, in the results of its business activity, in the results of new projects, etc.

    To mitigate this risk we have a broad catalogue of hedging products.

    An interest rate coverage is a contract through which two parties agree, during a certain time, an exchange of obligations calculated on a single face value and in the same currency, to be liquidated periodically on the dates determined by the parties.

    The objective of interest rate risk coverage strategies is to stabilise financial costs, not to obtain positive liquidations.

Hedging products

  • Among the top-selling interest rate coverage products are:

    • CAP: it consists of establishing a maximum interest rate limit, in exchange for which the customer pays a premium at the time of contracting. The aim of a CAP is to obtain protection in the event of interest rate increases. It allows the customer to set their maximum financing costs, while benefiting from possible reductions in interest rates during the lifetime of the operation.
    • Fixed rate: it consists of an exchange of flows between the customer and the entity, where the entity will pay the variable rate to the customer and the customer will pay the contracted fixed rate to the entity. The contracting of the product does not involve the payment of any premium by the customer.