• Risk Management Products

    CIT provides a full range of interest rate and foreign exchange risk management solutions to help you maximize the rewards of doing business in the global marketplace. We customize our solutions to your needs based on an in-depth understanding of your business and provide you with the product expertise and market intelligence to determine appropriate timing and pricing levels relative to your unique situation. 

    With personalized, one-on-one attention, CIT will evaluate your exposures and risk tolerance, map out the benefits and costs of alternative products and strategies, and design a solution that is tailored to your specific objectives, all while taking into account current market conditions and trends.

    Interest Rate Risk Management

    Our interest rate derivative products include powerful risk management tools that can help you achieve your financial objectives by:

    • Protecting your company or project from adverse changes in interest rates.
    • Enhancing your ability to meet budget goals by controlling fluctuations in interest costs.
    • Locking in favorable rates on loans or other debt financing that will close in the future.

    The flexibility of derivative products allows you to fully or partially hedge your new or existing debt for any amount or term and to execute your hedging transaction quickly once you have decided on a strategy. 

    Interest Rate Swap:  Convert floating rate debt to a low fixed rate for terms customized to match your underlying financing. 
    Interest Rate Cap:   Set a maximum level on your interest expense while still benefiting if rates stay low or decline. Also includes transactions such as swaptions.
    Interest Rate Collar:   Combine a cap with an interest rate floor, paying less up-front than you would for the cap alone.

    Foreign Exchange Risk Management

    If your business operates internationally, CIT can help you reduce the financial impact of unpredictable changes in foreign exchange rates by:

    • Protecting profit margins on international sales.
    • Fixing the cost of future payments to foreign suppliers.
    • Enhancing your ability to respond to foreign competition. 
    • Managing translational exposure of international investments.

    Some of the basic, yet crucial, foreign exchange hedging tools and services we offer include: 

    • Spot: Transactions to buy or sell foreign currency for settlement can be completed in one or two business days. We offer all the major currencies and most emerging market currencies. 
    • Forwards: Outright forwards, non-deliverable forwards, and foreign exchange swaps allow you to buy or sell a foreign currency at a predetermined price for delivery on a specified future date or within a range of dates. 
    • Options: Hedging tools that provide the right, not the obligation, to buy or sell a specific currency at an agreed upon rate during a certain period of time or on a specific date. 

      The products and services mentioned herein:
      -  are not insured by the FDIC;
      -  are not deposits or other obligations of and are not guaranteed by CIT Bank, N.A. or any of its 
         affiliates; and,
      -  are subject to investment risks, including possible loss of the principal invested.