M&T Bank offers a variety of hedging strategies to minimize foreign exchange and interest rate exposure. M&T Bank fully explains the benefits and drawbacks of each approach and develops recommendations based upon your unique situation. M&T Bank helps you develop the appropriate hedging strategy so you have more time to manage your core business. Moreover, M&T Bank provides timely strategic advice and updates on market developments to help you remain ahead of your competition.
Foreign Exchange Services
Tools that minimize your foreign exchange risk include:
- 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 US 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 bidding on foreign contracts
Interest Rate Services
M&T Bank offers the following products to help companies effectively manage interest rate risk:
- Interest Rate Swaps provides 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 limits exposure against rising rates at a lower cost than a cap by limiting the upside potential in a falling interest rate environment
To find out more, please send us an email, call the M&T Capital Markets Desk at 410-244-4353, or contact your M&T Relationship Manager.