interest rate hedging

interest rate hedging
interest rate hedging UK US noun [U] FINANCE
the activity of using financial products to protect against future changes in interest rates: »

Interest rate hedging helps protect your borrowing from the risk of fluctuations in interest rates.


Financial and business terms. 2012.

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  • macro hedging — Hedging the net risk exposure of an entity s entire portfolio or balance sheet. As opposed to micro hedging a single instrument. In interest rate risk management, macro hedging involves hedging the net mismatch or the net duration for the entire… …   Financial and business terms

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