Interest rate hedging solutions

StoneX offers a variety of interest rate hedging solutions for both borrowers and lenders to keep you ahead of the changing market.

Hedging solutions for borrowers and lenders

In addition to working directly with borrowers, as a non-bank swap dealer we partner with lenders to expand their offering breadth and help protect their balance sheets. StoneX also caters to an array of currency risk management needs via innovative FX hedging solutions.

Our tailored approach to lower capital costs

Trade directly with us

With an OTC account at StoneX, you’ll be able to execute trades efficiently with our in-house traders. One account gives you access to our deep liquidity in interest rates and currencies, as well as a broad range of OTC commodities.

Market strategy

Approach the market with a long-term plan to manage interest rate risk by:

Operating Note, Term Loan, and Pre-Issuance Strategies
Executing market or limit orders over time
Thoughtful market intelligence to identify timing opportunities
Balanced approach to interest rate and liquidity risk management
Formulating the appropriate mix of floating or fixed rate debt

Explore risk products

OTC interest rates product lineup

With more choices than ever when it comes to structuring debt, the ability to use swaps, caps and floors to your advantage can make a major difference in the total cost of funding. Explore our products.

Interest rate swaps

Customizable derivative contracts to access lower borrowing rates and help manage your exposure to fluctuating interest rates.

Learn more about interest rate swaps

Benefits

Competitive fixed rate alternatives
Customizable rate structures
Rate transferability to other loans
Two way make-whole calculation
Transparent upfront pricing

Custom amortizing schedules

Term loan hedging out to 15 years

Operating line hedging out to 10 years

Market Intelligence services

Complete product training

Secured Overnight Financing Rate (SOFR) and Euro Interbank Offered Rate (EURIBOR)

Interest rate caps and floors

We enable corporate hedgers, real estate investors and agribusinesses to set rates while minimizing and simplifying the impact they have on a balance sheet.

Benefits

Customizable strike, term, and notional structures
Cost-efficient execution
Flexibility to embed premiums into swap rates
Simple or sophisticated option strategies

Simple cap purchase

Interest rate collar

Cap spread

Embedded floor swap

Markets covered

When it comes to market coverage, there are few financial organizations that can match the breadth of StoneX. Explore our markets below.

Why StoneX?

StoneX is a leader in the interest rate derivatives business, providing straightforward solutions and transparent pricing directly to hedgers. StoneX was the first non-bank company registered provisionally as a swap dealer with the Commodity Futures Trading Commission.

We combine global market expertise, unique geographical perspectives and our award-winning risk management solutions to help our clients make smarter decisions on market risk and accessing capital.

Solutions

Interest rate swaps

Protect against volatility and hedge against adverse rate movements with interest rate swaps from StoneX Markets.
Explore interest rate swaps
Interest rate risk products

Guard against interest rate fluctuations with StoneX's tailored risk management solutions.
Explore risk products
Clearing & custody services

StoneX pairs international clearing and custody service with top-tier customer service to tailor solutions for a variety of correspondents.
Explore clearing services
Capital markets & advisory

Partner with StoneX Capital Markets for financing, funding and liquidity solutions to meet your growth targets.
Explore capital markets

Upcoming events

FAQ

What are some ways I can hedge my interest rate risk?

StoneX offers our customers a wide variety of interest rate products to help you manage risk to profitability posed by interest rate risk, including:

Interest rate swaps

Interest rate caps and floors

Hybrid swaps and options

Cap spreads

Dynamic hedging

What is interest rate risk?

Interest rate risk is a function of your exposure to future moves in interest rates, especially when borrowing at a floating rate. For example, a company may borrow at a floating rate, and then use various strategies to hedge against rising rates.

Let’s get connected

To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.

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The Broker-Dealer Division of StoneX Financial Inc. is a member of FINRA/SIPC, MSRB registered and is a wholly owned subsidiary of StoneX Group Inc. You can learn more about the background of StoneX Financial Inc. on Brokercheck. Click here for regulatory disclosures for the Broker-Dealer division of StoneX Financial Inc.

The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.

StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.

StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.

SFP acts as an appointed agent for SFL's payment services business.