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Capital Markets

Capital Markets Services at Huntington National Bank

Huntington National Bank offers a comprehensive suite of Capital Markets services designed to help businesses manage financial risks and navigate the complexities of the global marketplace. These services include interest rate risk management, foreign exchange (FX) solutions, and derivatives that enable businesses to mitigate the impact of market fluctuations and protect their bottom line.

As markets become increasingly volatile, businesses face challenges related to managing interest rate exposure, currency risks, and market-driven financial pressures. Huntington’s Capital Markets team works closely with businesses to develop tailored strategies that address these risks, ensuring financial stability and sustainable growth.

Interest Rate Risk Management

Interest rate fluctuations can have a significant impact on a business’s financial performance, especially when it comes to long-term debt, loans, and other financial obligations. Huntington’s interest rate risk management services help businesses mitigate the risk of rising or falling interest rates by providing customized solutions that align with their financial goals.

Key Features:

  • Interest Rate Swaps: One of the most effective tools for managing interest rate risk, interest rate swaps allow businesses to exchange fixed-rate debt for variable-rate debt, or vice versa. This helps businesses lock in favorable rates and reduce the impact of interest rate volatility on their financials.
  • Caps and Floors: Huntington offers interest rate caps and floors that provide protection against rising or falling rates. Caps set a maximum interest rate on a loan, while floors establish a minimum rate, helping businesses manage the risk of extreme rate fluctuations.
  • Forward Rate Agreements (FRAs): Businesses looking to manage interest rate risk in the future can use forward rate agreements to lock in a specific interest rate for a future period. This ensures that businesses can plan their finances with certainty, regardless of market conditions.
  • Customized Hedging Strategies: Huntington works closely with businesses to develop tailored hedging strategies that protect against interest rate risk. These strategies are based on the business’s specific financial objectives, debt structure, and market exposure.

Who Benefits from Interest Rate Risk Management?

  • Businesses with Variable-Rate Debt: Companies exposed to fluctuating interest rates on loans or lines of credit benefit from Huntington’s risk management solutions, which help stabilize their debt payments.
  • Real Estate Investors: Investors in commercial real estate can use interest rate swaps and caps to manage the risk associated with long-term financing on real estate developments.
  • Manufacturers and Wholesalers: Businesses with significant capital expenditures or large inventories can benefit from managing interest rate risk to ensure their cost of borrowing remains stable.

Foreign Exchange (FX) Solutions

In today’s globalized economy, businesses are increasingly exposed to currency fluctuations, especially those engaged in international trade. Huntington National Bank’s Foreign Exchange (FX) services help businesses manage currency risk by offering tools to hedge against unfavorable movements in exchange rates.

Key Features:

  • Spot Contracts: Huntington offers spot FX contracts, which allow businesses to exchange currencies at the current market rate for immediate settlement. This is useful for businesses needing to make international payments or settle invoices in a foreign currency.
  • Forward Contracts: For businesses needing to hedge future currency exposures, forward FX contracts enable them to lock in an exchange rate for a future date. This protects against unfavorable currency movements and provides certainty in financial planning.
  • Currency Swaps: Businesses that need to exchange currencies over a longer period can use currency swaps, which allow them to exchange principal and interest payments in one currency for another. This helps businesses manage both currency and interest rate risks simultaneously.
  • FX Options: Huntington offers FX options, which provide businesses with the right (but not the obligation) to exchange currencies at a predetermined rate. This offers protection against adverse currency movements while allowing businesses to benefit from favorable market conditions.

Who Benefits from FX Solutions?

  • Exporters and Importers: Businesses engaged in international trade can use Huntington’s FX services to hedge against currency risk when buying or selling goods in foreign markets.
  • Multinational Corporations: Companies operating in multiple countries benefit from FX hedging strategies to manage exposure to multiple currencies and protect their global revenue streams.
  • Investors in Foreign Assets: Businesses and individuals investing in foreign markets can use FX solutions to protect the value of their investments from currency fluctuations.

Derivatives

Huntington offers a wide range of derivative products designed to help businesses manage various market risks, including interest rates, currencies, and commodities. Derivatives can be used to hedge against price movements or as part of a broader risk management strategy.

Key Features:

  • Interest Rate Derivatives: Businesses can use derivatives such as interest rate swaps and caps to manage exposure to fluctuating interest rates. This helps stabilize cash flows and minimize the impact of rising borrowing costs.
  • Currency Derivatives: Huntington’s currency derivatives, including forwards, options, and swaps, provide businesses with the tools to manage foreign exchange risk and protect against adverse currency movements.
  • Commodity Derivatives: Businesses exposed to fluctuations in commodity prices, such as energy or raw materials, can use commodity derivatives to hedge against price volatility. This is especially useful for industries like manufacturing, agriculture, and energy.
  • Credit Derivatives: Huntington offers credit derivatives that allow businesses to manage the risk of counterparty default. These instruments help businesses protect their financial assets and minimize credit exposure.

Who Benefits from Derivatives?

  • Energy and Manufacturing Sectors: Companies that rely on commodities for production benefit from commodity derivatives to protect against price increases in raw materials.
  • Large Corporations with Debt Obligations: Businesses with significant interest rate exposure can use interest rate derivatives to stabilize borrowing costs.
  • Global Businesses with Currency Exposure: Companies involved in international transactions can benefit from currency derivatives to protect against fluctuations in exchange rates.

Why Choose Huntington for Capital Markets Services?

Huntington National Bank offers businesses expert guidance and tailored strategies to manage market risks effectively. With decades of experience in capital markets, the bank provides clients with innovative tools and personalized solutions to mitigate financial risks and capitalize on opportunities in the global marketplace.

Key Benefits:

  1. Risk Mitigation: Huntington’s capital markets services help businesses reduce exposure to market risks, ensuring financial stability even in volatile environments.
  2. Customizable Solutions: The bank offers a range of customizable products, including interest rate swaps, FX contracts, and derivatives, that cater to each business’s unique risk profile and financial goals.
  3. Experienced Team: Huntington’s capital markets team brings extensive experience in financial risk management, providing businesses with the support they need to navigate complex market conditions.
  4. Global Reach: With its comprehensive suite of FX and derivative services, Huntington helps businesses manage cross-border transactions and global market risks with ease.

Contact Information

For more information on Huntington National Bank’s Capital Markets services, businesses can contact them at:

Huntington National Bank’s Capital Markets services offer businesses a full range of tools to manage market risks, including interest rate risk management, foreign exchange solutions, and derivatives. By working closely with each business to develop tailored strategies, Huntington helps companies protect their financial position, enhance stability, and thrive in a rapidly changing market. Whether businesses are exposed to interest rate fluctuations, currency risks, or commodity price volatility, Huntington’s Capital Markets team delivers the expertise and solutions needed to navigate these challenges successfully.

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