Hedging and Lending: A Practical Guide (Butterworths Journal of International Banking and Financial Law)

The dramatic rise in interest rates across financial markets in Europe and the United States has brought back to center stage the importance of “hedging” interest rate exposure in financing transactions. Lenders are once again approaching loan transactions with the clear expectation that a borrower will hedge any variable interest rate exposure. In this article for Butterworths Journal of International Banking and Financial Law, the Firm's Ed Nalbantian and Liz Saxton provide an overview of the relevant legal and documentation issues arising from the hedging and lending relationship in commercial lending.