A cancellable swap is a combination of an interest rate swap and a receiver’s swaption that may be cancelled by the borrower at no cost on an agreed future date.

An interest rate collar is an option used to hedge exposure to interest rate moves. It protects a borrower against rising rates and establishes a floor on declining rates through the purchase of an interest rate cap and the simultaneous sale of an interest rate floor.

A commodity call option is a contract granting the consumer the right but the not the obligation to buy a specified quantity of a commodity from a producer at a set price before a fixed future date.

A commodity put option is a contract that grants the producer the right but not the obligation to sell a specified quantity of a commodity to the consumer at a fixed price before a stated future date.

An FX forward is a contractual agreement between the client and the bank, or a non-bank provider, to exchange a pair of currencies at a set rate on a future date.

An FX option is a contract that confers on the holder the right but not the obligation to exchange an amount of one currency for another at a pre-agreed rate (strike rate) on or before a pre-agreed date.

Interest rate caps are purchased to hedge floating-rate loans every business day. Cap pricing is driven by economic factors including the notional hedged, term, strike rate, forward curve, and volatility of the underlying index.

A case study of how Chatham helped publicly listed company Regional REIT with a successful £50M fund-raise.

A case study of how Chatham advised a UK REIT how to optimise its hedging strategy, when substituting an existing loan.

This white paper introduces the key sources of FX exposure, some common methods for mitigating FX risks, and some of the challenges and choices that typically arise around that process.