8. June 2017

Geblitzt!: Read the current LPA Geistesblitz Interest rate cap with contingent conversion

In the current market environment of a possible interest rate reversal in the euro area we observe an increase in customers wishing to secure the perceived intermediate low in interest rates. The Geistesblitz “Interest rate cap with contingent conversion” shows your customers with variable financing a premium-free alternative to enter an interest cap at 0,00% p.a. In this way, they can link an attractive hedging level with a Euribor floor in their financing or benefit from negative interest rates in case their interest rate is unfloored. The prerequisite is a currency-based underlying transaction and the possibility of using a part of potential market gains – in the present case exemplarily illustrated by a USD-importer, who waives any potential market gain above 1,20 USD/EUR.

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