US regional banks tilt hedges towards lower rates in Q1

- By Joshua Walker
- 09 Jun 2026

US banks entered the first quarter positioned for interest rate cuts, with hedging strategies tilted towards receive-fixed swaps that stand to gain in value if rates decline.

The trend was visible across several US banks that disclosed details on their hedging strategies in Q1. Regions Bank, for example, held $22.8 billion receive-fixed swaps notional on loans, compared to $4.4 billion in pay

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