👉 Interest engineering is a strategic approach used in finance to influence the interest rates at which borrowers and lenders transact, thereby optimizing financial outcomes. By manipulating factors such as the terms of loans, the structure of interest payments, or the use of financial instruments like swaps and derivatives, interest engineering aims to align the interests of both parties involved in a transaction. This can involve creating customized loan products with favorable terms, adjusting the duration of interest rates to match market conditions, or employing hedging strategies to mitigate risks associated with fluctuating interest rates. The ultimate goal is to achieve more predictable and beneficial financial results, whether it's for a borrower looking to minimize costs or a lender seeking to maximize returns.
