ANZ has the expertise across a broad product spectrum in interest rate derivatives. Our product offerings include Interest Rate Swaps, Basis Swaps, and Forward Rate Agreements (FRAs).
Interest Rate Swap
Interest Rate Swaps are often used by firms to alter their exposure to interest-rate fluctuations, by swapping fixed-rate obligations for floating rate obligations, or vice versa. By swapping interest rates, a firm is able to alter its interest rate exposures and bring them in line with management's appetite for interest rate risk.
Basis swaps, an element of interest rate swaps, allow investors who are expecting a change in the relationships between interest rates, to position themselves for hedging or speculative purposes.
Forward Rate Agreement (FRA)
FRA is an over-the-counter contract between two parties that determines the rate of interest, or the currency exchange rate, to be paid or received on an obligation beginning at a future date. The contract determines the rates to be used along with the termination date and notional value. On this type of agreement, only the differential is paid on the notional amount of the contract.
Learn more about Interest rate products.