A type of currency swap that involves counterparties in separate countries contractually agreeing to meet each other's loan obligations in their respective nations. International companies that enter into such agreements essentially gain the other party's comparative advantage for loans in each country's home currency. Both companies benefit from the agreement, often with lower interest and/or principle payments.
Related information about fixed-for-fixed swaps:
- Fixed-For-Fixed Swaps Definition | Investopedia
An arrangement between two parties (known as counterparties) in which both parties pay a fixed interest rate that they could not otherwise obtain outside of a ...
- Fixed-For-Floating Swap Definition | Investopedia
Fixed-For-Fixed Swaps. An arrangement ... Swap. Traditionally, ... Interest Rate Swap. An agreement ... Currency Swap. A swap that ... Bank Bill Swap Bid Rate - ...
- What is fixed-for-fixed swaps? definition and meaning
Definition of fixed-for-fixed swaps: A type of currency swap that involves counterparties in separate countries contractually agreeing to meet each other's loan ...
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Oct 2, 2012 ... This is part 4 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 and 2, we discussed ...
- Rate:Interest Rate Swaps
Fixed-for-fixed swaps involve the exchange of interest payments that both carry ... Fixed-for-fixed swaps are used when each party uses a different currency.
- Motivations for swap-covered foreign currency borrowing
BIS Representative Office for Asia and the Pacific. Internationalisation of Asia-. Pacific bond markets. Paper One: Anella Munro and Philip Wooldridge ...
- Currency swap - Wikipedia, the free encyclopedia
A currency swap is a foreign-exchange agreement between two parties to exchange aspects (namely the principal and/or interest payments) of a loan in one ...
- Swap - Financial Dictionary - The Free Dictionary
An arrangement in which two entities lend to each other on different terms, e.g., in different currencies, and/or at different interest rates, fixed or floating.