DerivativesDerivatives
In addition to structuring modern finance concepts in real estate investment banking, Hypo Real Estate Bank AG also offers its customers derivative risk management solutions. The active use of derivatives in risk management enables customers to obtain protection against market price risks and also to take advantage of opportunities arising from changes in market prices. The risks to be hedged comprise- Interest rate risks
- Currency risks
- Inflation risks
- Real estate risk.
Accordingly, Hypo Real Estate Bank offers its customers a wide range of modern derivative instruments for developing risk management concepts which are customised to meet the needs of the customers.
The products which are available include:
Swaps
An interest rate swap can be used for hedging a medium- or long-term interest rate. By taking out a swap, the customer separates liquidity and interest rate risks, resulting in an increased degree of flexibility for managing these risks. Interest swaps can be adjusted to meet the specific requirements of the customer: A wide range of alternative forms are possible, ranging from redemption structures and forward conditions right through to more complex termination rights.
Cap / Collar
By purchasing a cap, customers can obtain protection against rising short-term interest rates and simultaneously obtain the opportunity to participate in falling interest rates. The combination of a cap with a floor (= collar) means that the costs of such rate hedging can be reduced.
Quanto-swap
A quanto-swap is a version of an interest swap in which the customer is able to participate in lower interest rates in another currency. At the same time, potential currency risks are eliminated.
Inflation-linked swap
Inflation-linked cash flows, such as occur in indexed rental agreements, can be hedged by taking out inflation-linked swaps. The swap can be tailored individually to meet the inflation-linked cash flows of the customers.
Property derivatives
Property derivatives enable real estate risks to be managed quickly and in a cost-efficient manner. In addition to the synthetic establishment or reduction of risks, diversification into submarkets (regions, property types, etc.) is also possible.
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Contact
München
Von-der-Tann-Straße 2
D-80539 München
Germany
Tel +49 (0) 89 28 80-0
Fax +49 (0) 89 28 80-10319
Contakt via email
Rankestraße 26
D-10789 Berlin
Germany
Tel +49 (0) 30 75 77 77-311
Fax +49 (0) 30 75 77 77-333
Frankfurt
Ulmenstraße 23-25
D-60325 Frankfurt
Germany
Tel +49 (0) 69 770 39 46-0
Fax +49 (0) 69 770 39 46-33
Gustav-Mahler-Platz 1
D-20354 Hamburg
Germany
Tel +49 (0) 40 46 96 61-0
Fax +49 (0) 40 46 96 61-20