Developing & Implementing
a Loan Hedging Strategy

In this rate environment, borrowers seek the stability of a fixed-rate loan. Yet, floating rate loans are preferred by most financial institutions right now. This difference in interests creates a disconnect between the longer, fixed rate term structures borrowers want and the shorter duration assets community financial institutions need in a rising rate environment. So, what can you do to fix it?

You can develop a loan hedging strategy. This Industry Insights paper will explore how hedging can help reduce volatility, selecting the right hedging program for your institution and how to develop your hedging strategy.