Believe me, not a week goes by without one of our banks trying to sell us interest rate hedging. It's getting really hard being nice to them, though I understand the bank employees, because they have to sell something too. Interest rate hedging is a great tool for securing long-term capital assets, but not for a distributor who only finances liquid assets.

First: When interest rates increase, our warehouse will become more expensive. Before I put the effort into a six-digit interest hedge, I can always adjust my stock, especially when regarding the fact that we continually raise our net worth (I leave the majority of the profit in the company).

Second: The bank is right that the EURIBOR rate can triple at any time, for example, from one to three percent. But, in order for that to happen, the economy needs to be strong, the corporate credit ratings would improve, and then the banks would have to lower their interest margin. And just like that, you would win back percentage points. Over a five-year policy period it is still not an interesting offer: half of what you pay to the hedge fund is for nothing anyway; perhaps in the second half you could turn a profit.