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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.
    May 28, 2017
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    Key Contacts

    Canada
    Doug Houston
    Managing Director
    416 983 8650Click to mail
    United States
    Greg Young
    Managing Director
    212 827 7303Click to mail
    Duncan Swezey
    Managing Director, Commercial and CSB
    610 293 5614Click to mail
    London
    Anne Langford
    Director, Treasury Sales Europe
    +44 (0)20 7588 0552Click to mail