Interest Rate & Foreign Exchange Risk Management

Help protect your business from the risks associated with interest rate and foreign currency fluctuations. We offer customized hedging strategies to our commercial clients.

Interest Rate Risk Management

Interest rate risk management can be a key aspect of your overall hedging strategy. The experienced team at M&T can guide you through the details and make a recommendation based on your unique situation. M&T Bank offers the following products to help companies effectively manage interest rate risk:

  • Interest Rate Swaps. Provide the flexibility to optimize funding costs and structure
  • Interest Rate Caps. Provide protection against rising rates on floating rate debt
  • Interest Rate Floors. Offer protection against declining interest rates below a specified rate level
  • Interest Rate Collars. Limit exposure against rising rates at a lower cost than a cap by limiting the upside potential in a falling interest rate environment

Foreign Exchange Risk Management

Reduce the potential for financial loss as a result of foreign exchange rates. M&T offers tools to minimize your foreign exchange risk, including:

  • Foreign Wires and Drafts. Enable you to pay foreign invoices in their respective currencies, as well as redeem payments from foreign companies
  • Forward Contracts. Enable you to eliminate foreign exchange risk by "locking in" the U.S. dollar value of your foreign payables and receivables prior to their actual payment or receipt
  • Options Contracts. Give you the right, but not the obligation, to buy or sell a foreign currency at a predetermined rate within a specified time. Foreign exchange options allow you to protect yourself against adverse currency movements, while retaining the potential to benefit from favorable moves. Options are particularly useful when uncertainty exists, such as when bidding on foreign contracts
M&T Securities, Inc. does not provide tax advice in conjunction with the discussion of investment or insurance products. Please consult a tax advisor regarding specific tax effects.
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Investment Products: • Are NOT Deposits • Are NOT FDIC-Insured • Are NOT Insured By Any Federal Government Agency • Have NO Bank Guarantee • May Go Down in Value​​​​​