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2 months ago
Interest rate swap
This illustrates how an interest rate swap can transform a floating-rate obligation into a fixed-rate obligation and vice-versa
JDonado9602
commented:
Why would Party A choose to pay LIBOR to Party B ? I'm guessing that Party A expects the LIBOR rate to drop below the fixed rated he currently pays, but what if it rises dramatically? Isn't the potential downside unlimited? On the other hand, Party B exchanges a LIBOR payment for a fixed payme...
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Anyone know the track that starts around 0:47 ?? Its amazing