Interest rate swaps and credit default swaps are sophisticated financial management techniques. Although their names are similar, these investment tools have little in common. Differences exist in the ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Gordon Scott has been an active investor and technical analyst or ...

Changes in interest rates can wreck serious havoc on a business plan. One way companies limit their exposure to these fluctuations is by entering into a contract called an interest-rate swap. While ...

To continue reading this content, please enable JavaScript in your browser settings and refresh this page. Interest rates have been a persistent challenge for ...

In late 2007, as the U.S. subprime mortgage market began rapidly going south, leading to the second-worst economic collapse in U.S. history, economists and financial writers began writing about the ...

Put very simply, an interest rate swap occurs when a person or entity with debt makes a deal with a creditor in which that creditor will pay the other party’s variable rate debt. In the case of a ...

In today’s interconnected financial markets, businesses often find themselves exposed to dual risks: foreign exchange (FX) volatility and interest rate fluctuations. For companies with borrowings or ...

the fluctuating, variable rate of interest. If interest rates rise, as they did in the early years of this century, the bond issuer will never have to pay more than the agreed-upon fixed rate. But if ...

The interest rate swap market is the cash cow that explains the megabanks’ resistance to replacing LIBOR. But this market is the most dangerous of the three markets priced using LIBOR. It’s a bad ...

In October 2008, something happened that had never happened before. The United States (US) Treasury 30 year bond interest rate swap spread went negative, below the interest rates being paid on US ...

In the world of traditional finance, market players can swap future interest rate payments with one another. This is often done as a way to hedge against losses, manage credit risk, or speculate on ...