A security which combines the purchase of a cap and the sale of a floor to specify a range in which an interest rate will fluctuate. The security insulates the buyer against the risk of a significant rise in a floating rate, but limits the benefits of a drop in that floating rate.
Related information about interest rate collar:
- Interest Rate Collar Definition | Investopedia
An investment strategy that uses derivatives to hedge an investor's exposure to interest rate fluctuations. The investor purchases an interest rate ceiling for a ...
- Interest rate cap and floor - Wikipedia, the free encyclopedia
Interest rate collar …the simultaneous purchase of an interest rate cap and sale of an interest rate floor on the same index for the same maturity and notional ...
- Interest-Rate Collars for borrowers (Zero Cost/Zero ... - fxcenterUSA
If you buy a cap and sell a 'floor', this is known as an Interest-Rate Collar. Interest- Rate Collars will reduce the cost of protecting yourself against higher interest ...
- Interest Rate Caps, Floors and Collars
An Interest Rate Collar is simply a combination of an Interest Rate Cap and an ... As such the premiums payable for an Interest Rate Collar are less than the ...
- HSBC France - Interest rate collar
Guarantee a maximum loan rate and benefit from any decline in the benchmark rate down to a given level, for a reduced premium or no premium.
- Interest rate collar - Interest rate coverage - Risk coverage ...
An interest rate collar is a strategy with options by means of which you will be ... through an interest rate collar, you can limit the fluctuations of interest rates ...
- Interest Rate Collar for Borrowers - fxcentre.co.uk
Interest Rate Collar for Borrowers. Product Description Sheet. Your view anticipates interest rate √ uncertainty. Rate protection with this product √. Cost may be ...
- Interest Rate Collar
Interest Rate Collar. Characteristics. A Collar is the simultaneous purchase of a Cap and the sale of a Floor for the same expiration. This is a common strategy for ...