Rabobank Group

By managing your interest rate risks, you can remove a source of financial uncertainty, and by doing so improve the creditworthiness of your business.

Often it can be difficult to judge the future path of interest rates with any confidence, yet not doing so could materially affect your profitability and creditworthiness. With the world’s leading economists disagreeing about the outlook for inflation, anticipating where interest rates are heading is a difficult task. By actively managing your interest rate risk, you introduce greater certainty into your business.

At Rabobank, we work in close partnership with you to manage your interest rate risk. Our specialist dealing teams provide insight into how best to hedge risks, giving you access to the full range of derivative instruments.

Balancing certainty against cost
If you have significant borrowings, then a change in interest rates could have a considerably influence on your financial results. By taking out a loan with a variable interest rate, then you can benefit when short-term interest rates are low. But you run the risk of sharply higher payments should rates rise. If you choose a fixed-rate loan then you know exactly what rate you will pay – yet the cost of your loan may be too great and its term may turn out to be longer than you need. We help you make the right choice for your specific circumstances. 

Benefits of active risk management
Working with us to manage your interest rate risks actively offers a number of advantages:

• Better insight into your interest rate risks
• Expert advice on optimising your financing costs
• Developing a strategy that adapts to your changing circumstances

By working with our interest rate risk management specialists, you can reduce your business’s sensitivity to any future interest rate rises.