Interesting hedge
Interesting hedge
- 1992
- Estates Gazette (9218) 9 May 1992, 60(1) .
Describes swaptions, a hybrid between swaps and options, which allow borrowers to cover themselves against the risk of interest rates going up (or down) over a specified period. The purchaser has the choice to swap variable interest rates into fixed ones at an agreed rate, at a specified date in the future, for a pre-established period of time.
INTEREST RATES
Describes swaptions, a hybrid between swaps and options, which allow borrowers to cover themselves against the risk of interest rates going up (or down) over a specified period. The purchaser has the choice to swap variable interest rates into fixed ones at an agreed rate, at a specified date in the future, for a pre-established period of time.
INTEREST RATES