To establish an effective interest rate risk management policy for the company, you should identify and quantify the interest rate risk in a dynamic and correct way. We support corporates to achieve this.
As a result of effective interest rate risk management, the activities will be aligned with both the nature of the activities of the company as well as with its capital structure. The key objective for corporates in interest rate risk management is to protect the company against any adverse impact of interest rate movements. Interest rates affect companies in different areas:
A relevant measure of interest rate risk is the interest cover ratio, i.e. Ebitda/interest costs, an indicator of level capability of the company to fulfill their financing obligations.
We can assist in all areas of interest rate risk management, i.e. identification of the interest rate risk, measurement, review and design policy, procedures and processes for managing the risk and using hedging instruments (derivatives) such as interest rate swaps, cross currency swaps, interest rate caps, collars and other options to reduce the interest rate risk. Valuation and modeling of interest rate instruments is performed by the Zanders Valuation Desk. We supported many corporates in the execution process of derivatives to manage their interest rate risk in a prudent and effective way.
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