Question: You are a bank manager and have been approached by a swap dealer about participating in fixed for floating interest-rate swaps. If your bank has
You are a bank manager and have been approached by a swap dealer about participating in fixed for floating interest-rate swaps. If your bank has the typical maturity structure, which side of the swap might you be interested in paying and which side would you want to receive?
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A typical bank has liabilities that are shorterterm than its assets or has floating rate liabiliti... View full answer
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