Answer Posted / raghs
Depending on the type of swap whether its interest swap,
credit default, or the total return swap the definition
varies, the basis idea being acquiring some thing which the
organization has no privilege of, for eg: banks generally
are not allowed to invest in fancy instrument like variable
rated or commonly floating rated securities so they
approach a middle men to sell their fixed in return of a
floating rated securities.
Is This Answer Correct ? | 10 Yes | 9 No |
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