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Market Update

Turn to Chatham: Reemergence of interest rate floors


In our Turn to Chatham video series, Jackie Bowie provides exclusive insights into market developments shaping the U.K. and Europe.

In the wake of the GFC, discussions on zero percent interest rate floors were common, driven by the low or negative interest rate environment. Now, as we prepare for the possibility of interest rates declining again, interest rate floors — typically non-zero and ranging from one to four percent — have reemerged as crucial safeguards for non-bank lenders, particularly private debt funds, to protect their returns.

For more, read our insights to access expert market perspectives.

Market rates and forward curves

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