HEDGING TOOLS

What are interest rate and credit solutions

Movement in interest rates and bond prices can impact your company’s profitability and competitiveness. Protect your investments using Metrobank’s wide array of interest rate and credit solutions.

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Forward Rate Agreements

Lock-in the interest rate on a loan with an agreement where Metrobank will pay the additional interest on a loan if interest rates rise. Good for up to 2 years, subject to conditions.

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Interest Rate Swaps

Convert a series of cash-flows based on a variable interest rate into one based on a fixed rate, or vice versa. Good for up to 10 years, subject to conditions.

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Interest Rate Options

Protect yourself from future changes in interest rates by having the option to pay or receive an agreed interest rate on agreed dates. Good for up to 10 years, subject to conditions.

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Bond Forwards

Lock-in the price of a purchase or sale of a bond on an agreed date, regardless of the bond’s market price movements

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Bond Options

Have the right to buy or sell a bond at an agreed price on an agreed date, regardless of changes in the bond's market price. Good for up to 1 year, subject to conditions.

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Credit Default Swaps

Insure your bond principal with an agreement where Metrobank will pay you in case of credit events, such as if the bond issuer defaults. Good for up to 5 years, subject to conditions

Get interest rate and credit risk management

Find financial solutions to meet your company’s specific needs and protect it from risks. See how you can benefit from interest rate or credit risk management by contacting our licensed trader for more information on available products and how they can be integrated into your risk management practices.