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Answer Posted / abhijit k
in swaps two parties exchange there obligations generaly
interest payment obligation, only because they have
different views regarding the market, with a purpose to
save cost. banks are the intermediateries for swaps.
e. g. if A has taken a loan on fixed rate basis but is of
the view that interest rate will fall in the near future
then he can enter into a contract with exactly opposite
view i.e. B has taken loan on flexible interest rate but is
of the view that the interest rate will go up in the near
future.
| Is This Answer Correct ? | 51 Yes | 19 No |
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