Describe how an inverse floater swap works to the advantage of an investor who receives coupon payments

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Describe how an inverse floater swap works to the advantage of an investor who receives coupon payments of 10 percent minus LIBOR if LIBOR is currently at 4 percent.

When is it a disadvantage to the investor? Does the issuing party bear any risk?

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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Question Posted: Jun 04, 2024 01:10 AM

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Describe how an inverse floater swap works to the advantage of an investor who receives coupon payments

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Financial Institutions Management A Risk Management Approach

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