Interest Rate Caps
Interest Swaps with an Upper Limit
Hedge against the possibility of higher interest rates while still benefiting if interest rates fall. Here’s how an interest rate cap from Associated Bank works:
- Pay an upfront fee to cap interest rate exposure
- Each period, we compare the capped rate to LIBOR or another specified benchmark
- If the benchmark rate is lower than the cap, you pay the benchmark rate. If the benchmark rate is higher, Associated pays you the difference for that period.
Interest rate caps add predictability and affordability to your debt financing:
- Know your maximum interest payment
- Pay less when interest rates fall
- Protect against market volatility
Terms can be tailored to the underlying financing. Call your Associated Bank relationship manager today to learn more about interest rate swaps and caps.