A company borrows $220M for 5 years at 3%, but wants a Euro liability since its revenue comes mostly from Germany. The exchange rate is $1.10. The curren 5-year swap rate is $3.2% versus E3.1%. What is the net result for the company What would happen to the company if the swap counterparty fails at maturity, there is no collateral and the $/E FX rate moves to $1.15? A company borrows $220M for 5 years at 3%, but wants a Euro liability since its revenue comes mostly from Germany. The exchange rate is $1.10. The curren 5-year swap rate is $3.2% versus E3.1%. What is the net result for the company What would happen to the company if the swap counterparty fails at maturity, there is no collateral and the $/E FX rate moves to $1.15