National first bank decides to transform its balance sheet from liability sensitive, to asset sensitive. NFB considers using Amortizing interest rate swap linked to LIBOR. WHICH side of the swap should NFB take? is the fixed rate of AIRS higher or lower than that on a plain vanilla swap?

Answer rating: 100% (QA)

An interest rate swap is a forward contract in which one stream of future interest payments is exchanged for another based on a specified principal amount Interest rate swaps usually involve the excha... View the full answer