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on 04-Jun-2016 (Sat)

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Flashcard 149677841

Tags
#currency-swap #finance
Question
to swap only interest payment cash flows on loans of the same size and term. Again, as this is a currency swap, the exchanged cash flows are in different denominations and so are not netted. An example of such a swap is the exchange of fixed-rate US dollar interest payments for floating-rate interest payments in Euro. This type of swap is also known as a [...] swap, or cross currency swap.
Answer
cross-currency interest rate swap


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e exchanged cash flows are in different denominations and so are not netted. An example of such a swap is the exchange of fixed-rate US dollar interest payments for floating-rate interest payments in Euro. This type of swap is also known as a <span>cross-currency interest rate swap, or cross currency swap.<span><body><html>

Original toplevel document

Currency swap - Wikipedia, the free encyclopedia
illa interest rate swap) because they are denominated in different currencies. As each party effectively borrows on the other's behalf, this type of swap is also known as a back-to-back loan.[3]Last here, but certainly not least important, is <span>to swap only interest payment cash flows on loans of the same size and term. Again, as this is a currency swap, the exchanged cash flows are in different denominations and so are not netted. An example of such a swap is the exchange of fixed-rate US dollar interest payments for floating-rate interest payments in Euro. This type of swap is also known as a cross-currency interest rate swap, or cross currency swap.[4] Uses[edit] Currency swaps have three main uses: To secure cheaper debt (by borrowing at the best available rate regardless of currency and then swapping for debt in desired currency