Interest rates exceed one-year highs. Is your expense getting out of control?

February 23, 2021
Share
Print Friendly, PDF & Email

** Up again this week ** The five-year interest rate swap more than doubled over the past six months from around 0.25% to roughly 0.62% today.*  Treasury yields accelerated in the last two weeks.

Rising rate activity demands review by floating-rate debt borrowers and serious consideration of hedging floating-interest-rate risk exposures.

AEGIS Hedging can design and implement risk-management programs that neutralize rising rates. 

* – Feb. 23; monthly, Act/360 basis, against one-month LIBOR

10-Year Treasury rates are moving higher (Feb. 23), equivalent to a year ago. Floating-rate debt rates typically track these bond yields. See the table below for other benchmarks.

We welcome your call or note at rates@aegis-hedging.com to start quantifying your risk, describing the nature of your exposure, and designing a hedge policy that removes the appropriate amount of rate exposure.

Want to learn more about rate-market developments? See the recent note from AEGIS discussing Treasury and swap markets here.

Below: Multiple rate benchmarks have moved higher in the last week and month. There is still room to rise before year-ago, pre-COVID-19 rates are met.

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More