Skip to main content
TD Securities
 

Interest Rate Derivatives

At TD Securities, our dedicated risk management specialists customize solutions to reduce risk and advise on market strategy and execution of swaps, options and structured solutions.

 

Proper risk management allows our clients to focus on running their business. By reducing unwanted risk, you can minimize cash flow volatility, making your organization more attractive to both lenders and investors.

 

We have the expertise to tailor a comprehensive range of risk management products to suit your needs:

 

Interest Rate Swaps

 

Allow your organization to convert its floating rate debt into an instrument that is effectively a fixed rate debt to protect against rising interest rates.

 

Benefits

 

  1. Flexible risk management to protect against market risk and once approved, borrowers can enter into a swap at any time.
  2. Customization with respect to the forward start date, repayment schedule, maturity, currency and amendments.
  3. Unwinding a swap before maturity will result in either a market gain or loss depending upon the movement in market rates whereas with a term loan, prepayment will only result in a penalty payment.
  4. An Interest Rate Swap changes the effective interest rate you pay. It does not change any feature of your existing loan or any other part of your organization’s balance sheet.

 

Interest Rate Caps

 

Protect your organization against rising interest rates by capping the interest rate on your floating rate loan.

 

Benefits

 

  1. Provide insurance against a rise in rates, while benefiting from lower rates.
  2. Flexible risk management and customization.
  3. The Interest Rate Cap can be sold at prevailing market prices if the underlying loan is repaid and protection no longer needed.

 

Interest Rate Collars

 

Limit your interest rate risk within a known range by agreeing to both a cap and minimum rate.

 

Benefits

 

  1. Interest rate protection of a cap with potentially lower up-front costs.
  2. Flexible risk management and customization. You can specify the range (between the cap and the floor) to suit your organization’s risk tolerance and interest rate expectations.
  3. Collars may be cancelled or unwound at prevailing market rates. Similarly to unwinding a swap, you may realize a gain or a loss depending on market conditions.

 


 

TD Securities (USA) LLC is a member of SIPC and FINRA (see FINRA BrokerCheck).

TD Securities Inc. is a member of CIPF and IIROC.

    July 02, 2020
    Login to

    Key Contacts

    Toronto
    Brett Flint
    Managing Director
    416 982 4532Click to mail
    Montreal
    Jean-Francois Campeau
    Director
    514 289 0452Click to mail
    Calgary
    Gordon Hynes
    Director
    416 983 9209Click to mail
    New York
    David Chan
    Director
    212 827 7133Click to mail
    Portland
    Philip Polsky
    Managing Director
    207 828 7730 Click to mail
    Devon
    Mark Persichetti
    Director
    610 293 5638Click to mail
    London
    Simon Christie
    Director
    +44 (0) 20 7997 1937Click to mail