Ex $1$: OSG Corp and Toyota both wish to access funding at a lower cost. Toyota is looking to benefit from floating$-$rate borrowning, and OSG wants fixed$-$rate payments.

Assumptions: Toyota OSG

Credit rating AA BBB

Prefers to borrow Floating Fixed

Floating rate available TIBOR$+0\mathrm{.}25\%$ TIBOR$+0\mathrm{.}75\%$

Fixed rate available $7\%8\%$

What actions you advise for six$-$year swap? Consider two options:

$-$ Split the savings evenly between parties

$-$ Split the savings $2/3$ for Toyota and $1/3$ for OSG.

$-$ Assume now that Sumitomo$-$Mitsui Bank acts as an intermediary. Assume the bank's bid$/$ask spread on floating is $0\mathrm{.}125\%.$ Assuming same data as above, how the picture and gains change?