1. Business
  2. /
  3. Financial markets
  4. /
  5. Interest Rate Swap

Interest Rate Swap

Interest Rate Swap (IRS) is an interest rate hedging product designed to minimize interest rate risk. It is used, for example, to protect against rising interest rates in the case of a loan. It is a contract between the client and the bank to exchange a floating interest rate (e.g., 3M EURIBOR) for a fixed interest rate for a predefined period and at a predefined frequency. The payment amounts are calculated from the nominal amount of the IRS, which is not exchanged during the entire period; only the compensatory interest payments are exchanged. An IRS can simplify financial flow planning for the client. The transaction is concluded by phone with subsequent written confirmation.

More precise financial flow planning

More precise financial flow planning

Hedging against interest rate movements

Hedging against interest rate movements

Flexibility in setting IRS parameters maximizes risk elimination

Flexibility in setting IRS parameters maximizes risk elimination

Product independent of the loan and separately tradable

Product independent of the loan and separately tradable

The product is intended for clients who:

  • need to hedge their loan against rising interest rates

Conditions for concluding a transaction 

  • signed Request for trading with the Bank
  • minimum nominal amount of 1 000 000 EUR (or equivalent in another currency)
  • current account maintained in the IRS currency
  • loan currency: EUR / USD / GBP / CHF / CZK / PLN / AUD / CAD / NOK / SEK / HUF
  • trade agreement time: 8:30 AM – 4:00 PM
  • LEI code and EMIR i
  • collateral and approved trading limit
Contact Capital markets client division

Capital markets division client department contact

+421 2 5919 2044
[email protected]

www.tatrabanka.sk | Dialog: *1100 | Tatra banka a.s.
https://www.tatrabanka.sk/en/business/financial-markets/interest-rate-swap-irs/