Cap-It works best with JavaScript enabled. Enable JavaScript.
Cap-It works best with JavaScript enabled. Enable JavaScript.
caps@capit.co.uk 0208 004 5847

6. Is a Cap Certificate the same as an interest rate cap?

Share This

No.  A Cap Certificate has the same cash flows as an interest rate cap but contains an additional layer of credit risk.

The Cap Certificate is issued by Cap-It Issuer Limited (the SPV) which purchases and holds a corresponding interest rate cap from one of a panel of high grade international banks.  The payments made by the SPV to the certificate holder are funded by the Issuer’s receipts under the corresponding interest rate cap. 

« Back to Glossary Index
Cap-It © 2024 All Rights Reserved.

This website is operated on behalf of Cap-It Issuer Limited by Cap-It Financial Limited. Cap-It Financial Limited (Company number 09009529) is regulated and authorised by the Financial Conduct Authority (FRN: 700118), with its registered office at 2 London Wall Place 6th Floor, 2 London Wall Place, London, England, EC2Y 5AU. Cap-It Financial Limited arranges and promotes debentures issued by Cap-It Issuer Limited. Only Cap-It Financial Limited is regulated for the associated activities it conducts.

caps@capit.co.uk
0208 004 5847

Website by: Pink Sea Studios| Graphics by pch.vector

Disclaimer:  The public material on this website is for general information about Cap-It only and should not be regarded as an offer or invitation to engage in investment activity.  Our service is directed at and intended to be used ONLY by those persons defined as a Self-Certified Sophisticated Investor, Certified High Net Worth Individual, or Elective Professional Client.  Only users who qualify after pre-vetting by Cap-It may become eligible to invest.  Please read our eligibility page for more information.  If you are unsure of your categorisation, please consult an independent financial advisor.