While this minor disparity in the effective fixed rate, ex post, relative to its ex ante anticipated fixed rate would likely justify the ass

Publication: AFP Exchange PDF Version Many companies with variable-rate funding look to derivatives to transform their variable...

Values for all of these three contract prices are dependent on the yield curve as of the date of the valuation, or more directly, on the con

Assuming the availability of derivative instruments relating to the goods under consideration, most hedgers (or potential hedgers) realize t

The first pitfall to avoid is using a standard pay-fixed/receive-floating interest rate swap in conjunction with this loan. This plain-vanil

This lack of an initial payment does not exactly mean that the swap is free. It is not. Economists consider the cost of the swap to be an op

Cross-hedges may be used in financial markets. As is well known, interest rate swaps are the most common tool corporate treasurers use to co

Caps do work as advertised, with some qualifications. In a perfect application, the cap buyer would seek a structure corresponding with the

The issue gets a little more complicated when interest swaps are introduced into the equation. Interest rate swaps can be used to convert va

Despite the lack of certainty, it would seem that both alternatives of leaving the swap in place or liquidating the swap suffer from the sam