Derivatives

Spikes in operating costs can make or break the profitability of an operating division or location. Derivative solutions smooth price volatility so you know what your costs will be in advance, regardless of what happens in the markets.

Derivative Solutions that Reduce Operating Cost Risk

Key Bank's derivative product specialists team with professionals who are deep in your industry. Together, the team will structure and price a product that responds to your business’ unique operating structure, and help you to reduce risk where it will create the most impact to your bottom line.

Our interest rate and commodity derivative solutions can be particularly meaningful to energy, healthcare, real estate and consumer products businesses, among others.

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.

Our professional teams will listen to your goals and structure an interest rate derivative transaction that supports your financial goals, drawing from a variety of derivatives transaction types. Our capabilities include:

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

Key provides guidance on a number of commodities derivatives including:

  • Crude oil
  • Natural gas
  • Diesel
  • Gasoline
  • Heating oil / gas oil
  • Jet fuel
  • Heavy fuel oil
  • NGL's (natural gas liquids)
  • Aluminum
  • Copper
  • Lead
  • Nickel
  • Tin
  • Steel