INTEREST RATE COLLARS
An option that allows you to set a range and potentially save money.
Limit exposure to rising interest rates, in exchange for limiting benefits from falling interest rates, and pay less than for an interest rate cap.
Associated Bank offers interest rate swaps structured with collars:
Work with Associated Bank to determine your preferred interest rate range, marked by a cap and a floor.
We compare each period’s interest rate to a benchmark rate, typically LIBOR.
If the benchmark rate exceeds the cap, Associated Bank pays you the difference for the period.
If the rate falls below the floor, you pay Associated Bank the floor rate
Terms of the interest rate collar can be tailored to the underlying loan.
Call 866-524-8836
Capital Markets Desk,
available Monday - Friday 7:30 a.m. – 4:00 p.m. CST
