CNS Treasury’s Rollercoaster Interest Rate Swaps manage interest rate risk with variable notional amounts, aligning hedging with cash flow needs. Automated tracking and IFRS9 compliance enhance visibility and reporting.
Rollercoaster Interest Rate Swaps
CNS Treasury’s Rollercoaster Interest Rate Swaps functionality is designed to help organisations manage interest rate risk when there are fluctuating notional amounts over the life of a swap. Unlike standard interest rate swaps with fixed notional amounts, rollercoaster swaps allow for variable principal amounts that increase or decrease at set intervals or in line with specific cash flow requirements. This flexibility is particularly beneficial for companies with seasonal or irregular cash flows, enabling them to align their interest rate hedging more closely with their actual funding needs.
Key Features and Benefits
The Rollercoaster Interest Rate Swaps feature in CNS Treasury automates the tracking of notional changes, interest calculations, and payment schedules, ensuring treasury teams have real-time visibility into the swap’s current terms. This functionality also provides integrated reporting and analytics, helping users evaluate the cost and effectiveness of their hedging strategy as the notional amount fluctuates. Treasury teams can set predefined schedules or manually adjust the notional as needed, allowing for a highly customisable approach to interest rate risk management.
Compliance and Hedge Accounting
Rollercoaster Interest Rate Swaps in CNS Treasury are fully supported by IFRS9-compliant hedge accounting, ensuring accurate financial reporting as the notional changes over time. The platform automates the generation of journal entries, effectiveness testing, and other accounting processes, simplifying regulatory compliance. By integrating rollercoaster swaps into the broader risk management framework, CNS Treasury enables treasury teams to manage complex interest rate exposures with confidence and precision.
CNS Treasury’s Rollercoaster Interest Rate Swaps functionality offers a flexible solution for managing interest rate risk with variable notional amounts, providing real-time tracking, automated accounting, and enhanced reporting to support dynamic financial needs.
For assistance or to book a meeting, contact our support team at support@cnstreasury.com.
Thanks,
The CNS Team