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.