Borrower's Loan Protection

A CFI’s bond portfolio can face serious risk when interest rates rise. Duration hedging can help moderate that risk, but many financial institutions don’t use it. We review the most common duration hedging strategies to consider for interest rate risk mitigation.

CRE developers and lenders are seeing a stressed landscape for their business, as predictions of workers returning to offices haven’t been fully realized. A forward rate lock hedge can help both sides of the lending transaction by fixing a rate on future loans.