Interest Rate Collar


An Interest Rate Collar is similar to a Swap, except that instead of only one fixed rate, there are two fixed rates. The strategy therefore provides a maximum interest rate and a minimum interest rate, where the company is protected against any increase above the fixed maximum interest rate, but would not get the benefit from any drop below the fixed minimum interest rate.


Interest Rate Swap
Interest Rate Cap
Interest Rate Floor
Currency Swap
FX Option


 
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