Enter into an interest rate agreement for a fixed rate of interest for a predetermined period.
An FRA is a contract between the bank and the company that gives the company an agreed interest rate on loans and investments regardless of changes in the market rate. You agree on a fixed interest rate for a given period. The basis for determining the appropriate interest rate is the current market rate.
Interest rate agreements (IR agreements) benefit companies that want to avoid uncertainty related to the annual renewal of loans with variable interest rates (NIBOR-based interest rate). By entering into an IR agreement, the company can set an upper limit for the interest rate on future loan renewals (excluding margin) and also a lower limit on planned investments. This creates predictability and allows you to focus on your main operations.
We are a market maker in every market and offer a full range of services on foreign exchange and interest rates. We offer FRAs and IR agreements in the vast majority of currencies, including NOK. IR agreements normally have a term of up to two years. Our Risk Advisory team assists customers in managing financial risk, focusing on fixed income, currency and commodity exposure
DNB Carnegie offers corporate clients a variety of methods for hedging and eliminating currency risk. Contact us to find the right method for your business. We also offer courses and training in handling commodities, interest rates and currency risk.
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