• Loans and Trading Finance
• Property Lending
• Asset Finance
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• Risk Management
  • Interest Rates
  • Foreign Exchange
  • Commodities
  • Inflation

Inflation

Helping shield you from inflation uncertainties

• Protection against price changes in the marketplace
• Range of inflation swaps specifically designed for different sectors
• Hedging and risk management across major UK and European indices

Inflation creates significant cashflow and valuation uncertainty, particularly where income or costs are directly linked to an inflation index such as the UK Retail Price Index (RPI).

At Bank of Scotland Treasury, we understand just how market movements can impact on your business and can help shield you from the price changes that can – and do – occur. Using products such as inflation swaps we'll help you remove the uncertainty surrounding future inflation-linked flows.

Index-linked swaps can also be used to beneficial effect in many projects that generate inflation-linked income. Project companies are able to fix the inflation return via an index-linked swap thereby giving certainty of cashflow.

Similarly, in some UK lease transactions that include rent reviews linked to movements in a particular inflation index, lessors can use an indexed-linked swap to exchange inflation-linked rent receipts for fixed receipts. This gives certainty of cashflow that, in turn, can help the lessor achieve higher LTV (loan-to-value) ratios as against an unhedged index-linked income stream.

Our specialist inflation team provides inflation hedging and risk management solutions (swaps and options) across major UK and European inflation indices.