Interest rates exceed one-year highs. Is your expense getting out of control?

February 23, 2021
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** Up again this week ** The five-year interest rate swap more than doubled over the past six months from around 0.25% to roughly 0.62% today.*  Treasury yields accelerated in the last two weeks.

Rising rate activity demands review by floating-rate debt borrowers and serious consideration of hedging floating-interest-rate risk exposures.

AEGIS Hedging can design and implement risk-management programs that neutralize rising rates. 

* – Feb. 23; monthly, Act/360 basis, against one-month LIBOR

10-Year Treasury rates are moving higher (Feb. 23), equivalent to a year ago. Floating-rate debt rates typically track these bond yields. See the table below for other benchmarks.

We welcome your call or note at to start quantifying your risk, describing the nature of your exposure, and designing a hedge policy that removes the appropriate amount of rate exposure.

Want to learn more about rate-market developments? See the recent note from AEGIS discussing Treasury and swap markets here.

Below: Multiple rate benchmarks have moved higher in the last week and month. There is still room to rise before year-ago, pre-COVID-19 rates are met.

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