I was wondering what options do I have available to hedge against the inevitable/eventual rise of US interest rates?

One obvious action is to refinance my loan at the current interest rate. However I'm looking for an alternative strategy, at the very least, so I'll be able to compare the risks/benefits of the two. In other words, I'm wondering if there are financial instruments available to the general public that take advantage of today's low interest rate to offset a future rise in interest rates.

Is there an interest rate swap that I should look into that will allow me to mitigate an interest rate rise I expect in the next few years?

  • 1
    Rising interest rates have no effect on your mortgage unless it's adjustable-rate.
    – mbhunter
    Commented Jan 14, 2011 at 15:29
  • @mbhunter: from taking an action point of view: If I want to maximize my profit (or rather minimize my debt) then It's a good idea to consider refi when the interest rate is low, this brought me to think what other actions I can take whilst the interest rate is low and hence the question. make sense?
    – Falusberg
    Commented Jan 14, 2011 at 16:37

1 Answer 1


This question provides answers on how to short US Treasuries. Shorting US Treasuries is a way of betting that yields will rise on US Treasuries. Similar to hedging against rising interest rates.

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