Interest Rate Corridors

Combining Two Caps with Interest Rate Corridors

Interest rate corridors make your company a buyer and a seller. You purchase an interest rate cap with a low “strike” rate, and sell a cap with a higher strike. The premium you earn on the second cap helps offset the premium paid for the first cap.

Associated Bank can help you capture interest rate corridor advantages:

  • Pay a lower premium than with other interest rate derivatives
  • Protect against rates that rise above the first cap’s strike
  • Tailor terms to your financing strategy

Take advantage of innovative interest rate derivatives through Associated Bank. Call your relationship manager today.


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