Uses of interest rate swap

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Why any one will exchange the fixed payment with floating payment or vice versa by entering interest rate swap?

I am unable to understand it. Please help me.

Replies (5)

Please find the attached file. Hope it will help to clear doubt.

 

The file contains only 5 pages. It explains the 1 use of swap(i.e. hedging) another use (i.e. reducing cost of fund) is not explained here.

 

Thanks and regards

CA Nagendra

9811465474

Originally posted by : CA Nagendra

Please find the attached file. Hope it will help to clear doubt.

 

The file contains only 5 pages. It explains the 1 use of swap(i.e. hedging) another use (i.e. reducing cost of fund) is not explained here.

 

Thanks and regards

CA Nagendra

9811465474

Thanks a lot.

Mind blowing Concept sir. I read A.N Shridhar, SD Bala and JB Gupta book for this topic but your notes is superb than other. No word to explain.

Wish you all the best for your bright future. Very soon you will be the best faculty of SFM in Delhi.

Excellent!!!!!!!!!!!

Thanks a lot for sharing it.

You are welcome punit and Ravi. I will try my best

Superb

Thanks a lot sir.........

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