Swap Break Clauses: Difference between revisions
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The right of a bank as the seller to call for termination or re-pricing periodically during the life of a long term swap. Initially sold as a means of managing the fixed rate leg of an interest rate swap because banks could price the long term swaps as medium term deals. Post 2008 regulation means they now carry a capital cost for banks and termination or re-pricing has been known to be called by the bank. | The right of a bank as the seller to call for termination or re-pricing periodically during the life of a long term swap. Initially sold as a means of managing the fixed rate leg of an interest rate swap because banks could price the long term swaps as medium term deals. Post 2008 regulation means they now carry a capital cost for banks and termination or re-pricing has been known to be called by the bank. | ||
See also: | |||
[[Swaps]], | |||
[[Interest Rate Swaps]] | |||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Revision as of 13:06, 24 July 2015
Manage Risks
The right of a bank as the seller to call for termination or re-pricing periodically during the life of a long term swap. Initially sold as a means of managing the fixed rate leg of an interest rate swap because banks could price the long term swaps as medium term deals. Post 2008 regulation means they now carry a capital cost for banks and termination or re-pricing has been known to be called by the bank.
See also:
