Tag: Derivatives

Derivatives Are Tough But Hedging Is Easy (Get Our Documentation)


With a flat and low yield curve, borrowers’ demand for long-term fixed-rate loans is high.  Furthermore, based on the forward market and most analysts’ predictions, the yield curve is expected to stay low and flat in 2020. The difference between five and ten-year loan rates is currently only nine basis points, and the difference between five and 20-year loan rates is 21 basis points.

Now Is The Time For Loan Hedging

Loan Hedging Swaps and Derivatives

Success in banking is simple.  Offer the right product, to the right customers, at the right time.  The timing now is perfect to accommodate borrowers who want long-term fixed-rate loans, and the timing is also perfect for banks to convert those fixed-rate loans to a floating rate asset to protect the bank.  At CenterState we created a custom built loan product called ARC (Assumable Rate Conversion) program that is currently very popular with our own borrowers, and hundreds of banks across th

Using The Knock Out Loan For Profitability

Using Swaps and Hedging for Loans

Commercial lending is currently very competitive with too many lenders suppressing margins and loosening credit standards. Community bankers need all of the help they can get, which is why CenterState Bank created the Knock Out Loan.

Six Not So Obvious Reasons Why More Community Bank Are Hedging

Bank Loan Hedging And Using Swaps

Until approximately ten years ago, interest rate loan hedging (using swaps) was prevalent for national and larger regional banks, but most community banks avoided loan hedging for various reasons.  In the last ten years, more community banks have started to offer their borrowers some form of loan hedging option.

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