The volatility of foreign exchange and interest rate markets can have significant consequences for your company. Herwig Jaspers, Head of Fixed Income Sales North, BNP Paribas Fortis: "An ever growing number of companies are becoming aware of the benefits of actively managing interest rate and currency risk." This is where our Fixed Income Sales team comes in.
Managing currency risk
If you are active internationally, you come into contact with different currencies and therefore have to deal with currency risk. The foreign exchange market (also called the currency market or FOREX) is in fact very volatile. Even if you know exactly when you will receive your payments, the precise amount you receive could fluctuate in line with exchange rates. As a change in rates could have a considerable impact on your margins, it's a good idea to protect yourself from the risk of an increase or decrease in exchange rates between the invoice date and effective payment date. These fluctuations could also affect the price of your commodities, your investments and therefore how competitive your company is.
Interest rate risk management
Significant fluctuations also occur on the interest rate market (fixed income), so make sure you don't borrow at a higher interest rate than is necessary. Many solutions let you set the interest rate now for repayments on your future loan, and also ensure that you always benefit from the best fixed or variable interest rates. An Interest Rate Swap (IRS), Cap or Forward Rate Agreement (FRA) are just a selection from a long list. At BNP Paribas Fortis, we take the time to properly determine your profile so we can suggest the right solution for you. In fact, it is now possible to combine different structures to match your requirements perfectly.
Would you like to protect your company from the risk of inflation or volatility in commodity prices? Our team is at your disposal to discuss this subject. Please get in touch now.
Our specialist team, dedicated solely to medium-sized companies, works closely with your relationship manager.
Not yet one of our customers? Get in touch now with our Fixed Income Sales experts, located in Brussels right inside the trading room.