Protection against interest rate risk
Interest rate risk can have a significant impact on cash flows and financing costs. We identify and assess these risks and integrate the outcomes into our mandates, so clients have timely insight and control.
Gijs Elting
When interest rate risk should be considered
Our interest rate risk management services are never offered as a standalone solution. They always form part of a broader mandate. This ensures financing structures not only align with the client’s strategy, but are also resilient to interest rate movements. Interest rate risk is often a factor when arranging new financing or refinancing.
- New financing or refinancing with variable interest rates
- Uncertainty over cash flows due to interest rate movements
- Review of existing hedges
- Reducing risk while maintaining flexibility
Independent advice
We do not provide product advice, but we support clients throughout the process of discussing interest rate risk with licensed parties (such as banks). Our role is to provide insight and coordinate the mandate.
- Independent analysis of cash flows and scenarios
- Comparison of alternative structures and outcomes
- Collaboration with licensed parties on the selection of instruments
Part of a broader mandate
We incorporate interest rate risk management into our broader mandates and financing structures, ensuring arrangements remain realistic and resilient over the long term.
- Analysis of interest rate sensitivity and cash flows
- Developing scenarios and stress tests
- Preparing for meetings with banks or advisers
- Coordinating documentation and decision-making
