Examples of Interest Rate Hedge in a sentence
Any such termination in the case of an Interest Rate Hedge Transaction would result in the Issuer’s exposure to interest rate exposure increasing, and may result in the Issuer being required to pay a termination amount to the relevant Hedge Counterparty.
There are also currently a number of regulatory initiatives which may make it difficult or impossible for the Issuer to enter into Currency Hedge Transactions or Interest Rate Hedge Transactions.
However, the Issuer will depend on each Interest Rate Hedge Counterparty to perform its obligations under any Interest Rate Hedge Transaction to which it is a party and if any Interest Rate Hedge Counterparty defaults or becomes unable to perform due to insolvency or otherwise, the Issuer may not receive payments it would otherwise be entitled to from such Interest Rate Hedge Counterparty to cover its interest rate risk exposure.
Furthermore, the terms of the Interest Rate Hedge Agreements may provide for the ability of the Interest Rate Hedge Counterparty to terminate such Interest Rate Hedge Agreement upon the occurrence of certain events, including related to certain regulatory matters.
Fees, commissions and other amounts payable to the counterparty or exchange (excluding, however, the swap or option payments) in connection with an Interest Rate Hedge will not exceed those generally obtainable in competitive markets for parties of comparable credit quality.