What is the essential condition for a fixed-for-floating interest rate swap to be possible?

For a fixed-for-floating interest rate swap to be feasible it is essential for a quality spread differential to exist. Generally, the default-risk premium of the fixed-rate debt will be larger as compared to the default-risk premium of the floating-rate debt.

Posted Date: 5/9/2013 6:00:37 AM | Location : United States

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