Interest Optimization
With the fluctuations in interest rates shown in recent years, investors in interest rate products and lenders who pay interest on their loans have discovered that there are risks attached to their investments/liabilities which they have not always anticipated. Some large losses were suffered due to the movements in interest rates. This resulted in specialized interest rate derivatives being created in the market to hedge the risk of large financial losses due to movements in interest rates. These derivatives, although developed to manage the risk of interest rate fluctuations, can also in certain circumstances be used to hedge other risks, such as price risks.
With PSSIB's interest optimizations, clients will benefit from improved margins for maintaining balances. This service does not encompass the physical movement of funds between accounts so the clients benefit from reduced transaction and FX charges, as well as from avoiding any additional workload for their back office.
Those seeking to optimize treasury without actually carrying out transfers of liquidity can use PSSIB's comprehensive notional pooling services where individual account balances can be brought together on a purely notional basis in order to calculate interest.
Among your choices, Private Scandinavian Sparkasse Investment Bank, offers the three most efficient methods in securing interest optimization: Forward Rate Agreement, Floor and Interest Rate Swap.
