BofA extends ‘guaranteed rate’ window to a year

Bank of America has begun offering commercial banking clients a locked-in foreign exchange spot rate to transact against for a year, as banks look to increasingly offer the product to smaller clients that don’t want to trade derivatives.

The product sees a dealer offer a fixed exchange rate that a client can hit at any time over a given period, as a way for clients to effectively hedge their FX exposures without needing internal systems or contracts to deal with derivatives transactions. A number