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Interest rate swap

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Uploaded by on May 21, 2008

This illustrates how an interest rate swap can transform a floating-rate obligation into a fixed-rate obligation and vice-versa

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Education

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Standard YouTube License

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Uploader Comments (bionicturtledotcom)

  • Thanks for MY time?! It was the best explenation I ever heard and it saved me hours of reading ;) So thank YOU for YOUR time! :)

  • @gaabsmrr ha, i am so glad it is helpful. THANK YOU for your comment, I can thank you for that, right? :)

Top Comments

  • I really like your illustration. One thing that I think could improve it (and this is often the case with these kinds of things), is an explanation of the motivation of the parties. Is it like this: One company has a fixed rate and they think the LIBOR is likely to go down, so they wish they were paying LIBOR. And the other company is paying LIBOR and doesn't want to be exposed to the risk of LIBOR rising so they make an agreement to pay fixed if the other guy will pay their LIBOR.

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All Comments (122)

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  • @bionicturtledotcom Haha, yes, that's okey ;)

  • Plain Vanilla Swap;

    Rfix=[1-d(0,N)]/[Σ(n=1,N)d(0,n­)τ]

  • @MegaVenerable learn english

  • Que lástima que no pongas subtítulos en español, pues parece interesante la explicación

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