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Question
Which of the following describes the process of "netting" in the swap market?
A. Stripping out the "interest rate" sensitive element of total return swaps to reduce the net portfolio risk.
B. Acting as an intermediary by bringing together two FIs with opposing interest rate risk exposures to enter into a swap agreement.
C. Turning fixed-rate liabilities into net variable-rate liabilities.
D. Calculating the net difference between the two payments, and making a single payment for the net difference.
E. Squaring off contracts on or before expiry.
Answer
This answer is hidden. It contains 1 characters.
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