Interest options and strategies
Floating interest rate with limitation against increase (CAP) offers clients a possibility to determine the maximum interest rate level.
- Utilisation possible with loans
- Only compensatory payment between the reference and agreed fixed rate is made
- Required accounting as with derivative
- Client pays the bank so-called premium for option
Floating interest rate with limitation against decrease (FLOOR) gives client a possibility to set a minimum interest rate level for a long-term investment.
- Cost-free solution for ensuring the minimum and maximum interest rate
Possibility to participate in the eventual interest rate decrease (with loan)
For a detailed description of the Standard Financial Instruments and their associated risks click here.
Capital markets division client department contact
+421 2 5919 2044