The document discusses interest rate risk and how interest rate swaps and futures can be used to hedge against it. Specifically, it notes that if interest rates rise beyond a fixed rate, firms will incur losses from interest rate risk. It provides an example of a TV firm that lends at a fixed 12% rate but borrows at a variable rate of LIBOR + 0.25%, exposing it to interest rate risk. The document states that interest rate swaps and futures contracts traded on exchanges through brokers can be used to hedge against the risk of rising or falling interest rates.