| Interest Rate Swap | |
 A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. |
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 The advantage to this is that one company may have access to lower fixed rates and another company may have access to lower floating rates... so they trade. |
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 Interest Rate Swap - More detail on how simple interest rate swaps work. |
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Related Terms
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