Interest Rate Swap

• Two parties  agree  to exchange interest payments, based on a nominal principal, over a certain period of time. One party is required to pay a floating interest rate and the other party to pay a fixed interest rate
  
  
  
• Suitable for corporate with floating interest rate loans/liabilities
  
  
  
• A defensive and conservative hedging strategy to hedge against rising interest rate risk
  
  
  
• Simple and straightforward hedging solution
  
  
  
• Allows hedger to convert his floating interest rate loan into a synthetic fixed interest rate loan so he could ascertain the interest costs
  
  
  
• No exchange of notional amount, only exchange of interest payments
  
  
  
• No upfront fees payable
  
  
  
• Available in different currencies (for example, SGD, USD, EUR, JPY. etc) and available to hedge against different floating interest rate market indices (such as SGD Swap Offer Rate, USD Libor, EURIBOR etc)
  
  
  
• Tenure ranges from 1 year to 15 years

Terms and Conditions apply.