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Many corporations are exposed to interest rate risk. What does it take to manage this risk? The ongoing evaluation of risks, appropriate derivative or non-derivative strategies and the related accounting implications are all part of a robust hedge program. This eBook outlines a few common steps to implementing an interest rate hedge program.

Most corporations are exposed to interest rate risk. Once the exposures are identified and derivative instruments evaluated, it is time to marry the two by setting company strategy: defining what instruments will be used to hedge what exposures.

Hedging generally involves exchanging one kind of risk for another, more acceptable risk. To hedge interest rate risk, this typically involves exchanging variable rate debt for fixed rate debt, or exchanging fixed rate debt for variable. 

Download this eBook to get started with seven steps for interest rate hedge program success, including:

• Developing a risk management policy
• Exposure classification
• Strategy development
• Striking a balance with your counterparty
• Accounting for derivatives
• And much more

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