BofA extends ‘guaranteed rate’ window to a year
US bank holds spot FX rates for longer period to give alternative hedging tools to smaller clients
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
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