What is Derivative Hedging? 

Interest rate derivatives are financial contracts executed between two parties, designed to protect the balance sheet from exposure to changing interest rates. 

Catalyst Strategic Solutions' Derivative Hedging Services guide credit unions through the process of implementing derivatives. As an approved vendor under the NCUA’s derivatives investment program, CSS has the systems and expertise in place to help your credit union manage risk.

Request a Derivatives Meeting


Hedging can help your credit union:

  • Hold more long-term, high-yield assets
  • Stabilize cost of funds
  • Retain and grow assets
  • Strengthen your liquidity position

Types of Derivatives:

  • Interest rate swaps
  • Interest rate options (caps & floors)
  • Treasury note futures
  • Basis swaps