--%>

Motivations for counterparty to enter into the currency swap

Specify the basic motivations for the counterparty to enter into the currency swap.

E

Expert

Verified

One basic reason for counterparty to enter in the currency swap is to exploit the comparative advantage of other in obtaining the debt financing at the lower interest rate than could be obtained on its own. Second basic reason is to lock in long-term exchange rates in repayment of debt service obligations denominated in the foreign currency.

   Related Questions in Financial Accounting

  • Q : Categories of occupational crime

    Describe four categories of occupational crime.

  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

  • Q : What is Internal Communication Internal

    Internal Communication: Employee or Organizational Communication refers to the phenomenon of interaction among employees that exist in organizations. In other words, it could also be termed as Internal Communications.

    Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Q : Define the term Cash Define the term

    Define the term Cash in accountancy?

  • Q : Separately-priced-items strategy

    Problem 1.  The manager of Joe's Menswear has noticed that over the past two holiday seasons their usual sales strategy of marking down prices has not been yielding the boost in revenues that it once did.  JM sell men's suits, dress shirts,

  • Q : Personal identities-Organization health

    Personal identities: Generally employees like to work as they interact with animals and success motivates them, they learn new things in their routine job and they are a member to team.  But some job requirements like conducting euthanasia impact

  • Q : Determinants of operating exposure

    Describe determinants of the operating exposure.

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create