Interest Rate Risk Hedging Product - ICBC (Asia)
Interest Rate Risk Hedging Product
Interest Rate Swap (IRS)
Interest rate swap refers to the agreement signed between the customer and ICBC Asia to calculate interest according to the agreed principal and interest rate within a certain period of time in the future, and to exchange interest. Interest rate swap with amortized principal can be tailored-made depends to customer needs, interest rate payment and replacement interest rate frequency can also be set.
Interest rate swap is an exchange of fixed interest rate and floating interest rate, and the floating interest rate basis mainly includes SOFR and other ARR interest rates. During the duration of the contract, the market value of the contract will be changed due to the market fluctuations.
Cross Currency Swap (CCS)
Cross Currency Swap (CCS) is the agreement of cash flow in two currencies agreed upon by two parties. The agreement signed between the customer and ICBC Asia is to exchange the principal of currency A and currency B at the agreed exchange rate on the near delivery date (It is optional not to exchange/ exchange the principal), and carry out a reverse exchange of principal at the same exchange rate and the same amount on the delivery date, which the transaction details have been agreed by both parties at the beginning of the period).
CCS with amortized principal can be tailored-made according to customer needs, interest rate payment and replacement interest rate frequency can be set. Customers can flexibly choose the interest rate calculation method (fixed interest, floating interest) of the exchange funds according to their needs, and choose whether to exchange the opening principal according to the needs of the use of funds.
Tailor-made Interest Rate Hedging Products
Tailor-Made Hedging Products to different customers to meet their specific needs’and to hedge their interest rate risk.
*Investment involves risk, the price of investment products may sometimes be very volatile, the price of investment products may go down and may even become valueless. Trading investment products may not necessarily result in profit, but may result in losses.
