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Overview


Fluctuating operating costs can have significant consequences on your company’s bottom line. Budgeting and forecasting may be managed using hedge solutions, allowing you to focus on your core business.

Hedging Solutions that Reduce Risk

KeyBank's Risk Management product professionals team with our client-industry specialists. Together, the team will work with you to structure solutions that address your business’ unique exposures and help to reduce risk.

Our solutions can be particularly meaningful to energy, industrial, healthcare, real estate and consumer products businesses, among others.

Recent Deals

KeyBanc Capital Markets® provides derivative solutions to companies in a range of industries. Examples include:

  • An independent power producer implemented pay-fixed interest rate swaps to lock in long-term financing on three wind power projects.
  • A parking operator entered a callable swap to fix the interest rate across a portfolio of debt facilities and achieve flexibility to sell single properties as-needed without additional fees.
  • An oil & gas production company used a financial contract to sell forward a portion of its natural gas production for ten years, ensuring adequate returns on invested capital and predictable future cash flow.

Interest Rate Hedging

Commonly hedged exposures include:

  • Variable interest rates on outstanding debt
  • Changes in interest rates leading up to future debt issuance
  • Managing a company’s fixed / floating debt ratio
  • Differences in international interest rates or long-term foreign investments

Our capabilities include:

  • Interest rate swaps
  • Interest rate options
  • Collars & corridors
  • Cancellable swaps
  • Cross currency swaps
  • Swaptions
  • Treasury locks & cash settled swaps

Commodity Hedging

Commonly hedged exposures include:

  • Sale price of future oil and gas production
  • Future purchase price of fuel for service fleet or manufacturing
  • Future purchase price of product inputs

Our capabilities include:

  • Crude oil (WTI, Brent, LLS)
  • Natural gas (including Basis)
  • Diesel (NYMEX, DOE, USGC)
  • Gasoline (NYMEX, DOE)
  • Jet fuel
  • Heavy fuel oil
  • NGL's (natural gas liquids)
  • LME Aluminum
  • Midwest Aluminum Premium
  • Copper (LME, NYMEX)
  • Lead
  • Nickel
  • Tin
  • NYMEX HRC Steel
  • Zinc

Contact Us

KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp® and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC, and KeyBank National Association ("KeyBank N.A."), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A.

KeyBanc Capital Markets Inc. is not acting as a municipal advisor or fiduciary and any opinions, views or information herein is not intended to be, and should not be construed as, advice within the meaning of Section 15B of the Securities Exchange Act of 1934.

Securities products and services: Not FDIC Insured • No Bank Guarantee • May Lose Value

Please read our complete KeyBanc Capital Markets disclosure statement.
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