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Interest Rate Products

As a member of HSBC Group, our close ties with banks around the globe enhance knowledge and connectivity to major market competitors. As the leading underwriter and market maker in 15 domestic Asian bond markets HSBC acts as the primary dealer for government bond markets across European countries including France, Germany, Austria, Greece, Belgium, and Portugal.

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Small Businesses

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Larger Businesses

Products and product features

We offer a variety of products and services to help identify and manage the risk associated with interest rate exposure helping you to understand your exposures as well as to understand how our products work. Many of our product offerings are detailed below:

  • Interest Rate Swaps are instruments for swapping the rate of interest you pay on a loan or receive on a deposit, which effectively works to protect against adverse movement in rates and protects borrowing costs and investment yields.
  • Interest Rate Caps guarantee the maximum interest rate, allowing borrowers to benefit from lower rates in the event of unfavourable rate movement as well as additional flexibility.
  • Interest Rate Floors set a guaranteed minimum rate that all clients, whether borrowing or investing, will receive on an agreed amount for a specific time period while retaining the ability to take advantage of higher rates when available.
  • Interest Rate Collars ensure that the rate of interest a borrower pays will not rise above a pre-agreed level while in return giving up some of the potential to benefit from lower rates, acting as both a floor and cap.

Bank of Bermuda is licensed to conduct investment business by the Bermuda Monetary Authority. This is not a recommendation, offer or solicitation to purchase or sell any security, commodity, currency or other instrument. The information provided herein does not consider specific objectives, circumstances or needs of individual recipients. The use of commodity or financial futures, foreign exchange contracts, investments and index contracts and options thereon involve special risks. Investors should be aware that the risk of loss from investing in these types of securities can be substantial and should therefore be able, financially and otherwise, to assume the risks of such transactions. Readers of this information should seek financial advice regarding the appropriateness of investing in any security, commodity, currency or derivative instrument or strategy contained herein.