Cash Flow Hedge (CFH) to Hedge Interest Rate Risk 

 

In the case of a planned transaction, interest rate trends may result in the payment amount being greater than expected. You can hedge this risk with a cash flow hedge. The payment represents the exposure.

 

To map a hedging relationship, the following product types are provided for the hedging instrument:

●      Interest rate swap

●      Cap/floor

●      Cap/floor collar

●      FRA (Forward Rate Agreement)

●      Cross currency interest rate swap

 

See also:

CFH: Interest Rate Swap Used as a Hedging Transaction

CFH: Cap/Floor Used as a Hedging Transaction

CFH: Cap/Floor Collar Used as a Hedging Transaction

CFH: FRA Used as a Hedging Transaction

CFH: Cross Currency Interest Rate Swap Used as a Hedging Transaction

CFH: Cross Currency Interest Rate Swap and Interest Rate Swap Used as a Hedging Transaction

Cash Flow Hedge (CFH) to Hedge Foreign Currency Risk