Swaps provide for more complete financial markets and help, Ask an Expert

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Swaps provide for more complete financial markets and help borrowers tailor their financing at lower interest rates in markets that might not be accessible to them. However swaps present risks.

• If you were the swap bank, discuss the 2 risks that you would consider to be the most important?

• Why is the expected loss from a default on a swap less than the expected loss from the default on a loan with the same principal?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91790861

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