Is there credit risk in an interest rate swap with an intermediary bank serving as the swap

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Is there credit risk in an interest rate swap with an intermediary bank serving as the swap dealer? Describe when default losses might arise and which party is at risk. Explain how credit risk can be reduced.

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:56 AM

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Is there credit risk in an interest rate swap with an intermediary bank serving as the swap

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There is credit risk in a swap agreement Each swap party assumes the risk that ...View the full answer

Bank Management

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