Interest cap warrants

Compact knowledge at a glance

Interest cap warrants

Compact knowledge at a glance

Hedging with interest cap warrants

Advantages

  • The risk of interest rate changes is limited, making the interest expense easier to calculate.
  • Borrowers can continue to benefit from low interest rates compared to a fixed interest rate.
  • The maximum interest payment and thus the highest possible loan installment burden can be better calculated.
  • Interest cap warrants are available with different strikes, terms, and repayment schedules, suitable for all loans and can also be purchased for existing loans.
  • They can also be sold at the current market price.

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