In a swap, two parties contract to exchange interest rate payments or foreign exchange payments. If interest

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In a swap, two parties contract to exchange interest rate payments or foreign exchange payments. If interest rates (or foreign exchange rates) move a good deal, one party can face considerable future loss exposure, creating incentives to default.

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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