Interest Rate Swaps - What are they?
An interest rate swap is a popular and highly liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps are commonly used for both hedging and speculating.
Have The Banks Mis-Sold You?
James Ducker, a whistleblower who sold swaps for Lloyds and HBOS told the press, "We were selling protection against rates increasing with a lack of consideration for what would happen if rates fell. The bank was protected more than the customer and it was normal practice to emphasise the rewards and de-emphasise the risks."
Now, with interest rates sitting at all time lows for a record period of time, anyone who bought an interest rate "swap" a few years ago will be wishing they hadn't. As a small business were you lured into buying these products by the banks?
How Can We Help?
If you feel you have been mis-sold an interest rate swap, please register your interest with us, and one of our specialist financial consultants will call you back.