Tag: Floors and Caps

How and When To Use A Cap in Your Loans

Using Caps For Loans

We recently discussed how banks should be treating interest rate floors.  Today we want to cover the converse structure – the interest rate cap.  We are going to review how banks are using caps on loans and how some banks have been using balance sheet caps to manage interest rate risk.  We will share some general observations and our recommendations.

What is an Interest Rate Cap?

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