Interest Rate Hedging Products

An Interest Rate Swap or Interest Rate Hedging Product (IRHP) is a type of financial derivate used to manage the fluctuations in interest rates.

Banks have attempted to sell Interest Rate Hedging Products as ‘protection’ against rising interest rates. These products are financially speculative and overly complex, and were often a requirement or condition for the Bank agreeing to provide a separate loan facility.

Interest Rate Hedging Products are complex and were typically marketed with the expectation that interest rates would rise. However, if interest rates dropped, businesses were required to pay high-interest amounts to their bank.

In most cases, Banks actively incentivised the sale of these products, but the extent of exit fees were not fully disclosed.

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Types of Interest Rate Hedging Products

How can we help?

At Seneca Banking, we extend our existing debt advisory expertise to support stakeholders whose businesses have been directly impacted by mis-sold Swaps and other Interest Rate Hedging Products.

These products were widely sold by financial institutions mainly between 2005 and 2010 in conjunction with term loan and overdraft products with the intention to minimise risk to interest rate rises.

If you suspect that you may have been mis-sold an Interest Rate Hedging Product, get in touch for a free no obligation consultation with a member of the Seneca Banking Team.

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Whether you’re looking to discuss a potentially mis-sold Interest Rate Swap, or you’re just looking for more information, get in touch. Fill in the form below and we’ll call you right back.

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For more information about Seneca Banking and the services that we offer, please do not hesitate to get in touch. Fill in the form below and we’ll call you right back.