January 3, 2012
What is an Interest Rate Swap?
I came across this blog post and felt I should help, so I put together a simple explanation for what a rate swap is. I’m hoping regular reader know this stuff, but have a look and let me know any feedback.
The explanation uses Panasonic as maker of TVs who use the Bond market to borrow, to expand production, and then as interest rates rise, they use a rate swap to fix their payments.
Read the PDF here, and ISDA here
And also the wikipedia entry here
Popular
Most Viewed
Articles
Jun. 30, 2022
SIMM Falls Short says PRA Letter to Banks
Jun. 28, 2022
FMSB Statement of Good Practice on Trading Platform Disclosures
Jun. 20, 2022
Regulatory change and data fragmentation are key challenges for 85% of firms
Jun. 13, 2022
Driving competitive advantage from FX TCA to LPA
Jun. 09, 2022