Interest Rate Swaps

What is an interest rate swap?

Interest rate swaps or interest rate protection products come in many shapes and sizes - such as a cap and collar, extendable swap, structured collar but all form part of the `interest rate protection family`.

Institutions promoted these agreements to customers to protect against increasing interest rates. The Institution’s reason for making the recommendation was usually that the customer would pay no more than the capped or fixed interest rate, even if interest rates were higher than that amount.

For further information, please contact Robert Morfee, Clare Harries or Catherine Zakarias-Welch