Some Variants to plain vanilla Interest Rate Swaps:

Overnight index swaps are employed by end-users for speculative purposes who take a position in anticipation of a change in the relative level of credit risk in the market

Arrears swaps are used by institutions wishing to exploit the interest rate differential between two countries while hedging the currency risk.

Regarding the information above, which of the following is true?

A. The definition in Bullet 1 is correct

B. The definition in Bullet 2 is correct

C. Both definitions are incorrect