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In: Finance

Are Swaps optimal for risk transfer for banks and local governments Why or Why not?

Are Swaps optimal for risk transfer for banks and local governments Why or Why not?

Solutions

Expert Solution

A Swap is an agreement b/w 2 parties to exchange 1 stream of payments for another, over a set period of time.

Swaps are derivative contracts and they trade over-the-counter (OTC).

jeff jeffy answered 6 months ago
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