Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

Interest rate Swaps

Mmansoor9y ago
Good morning.... is it safe to say that swaps are used mainly for long term hedging and all other techniques are for short term?
John MoffatJohn MoffatTutor9y ago#1
That is true (although more important (as far as the swaps we look at in P4 are concerned) is that they are potentially (although not always) a way of getting the borrowing we want (i.e. fixed or floating) at a lower interest cost.
Sign in to reply to this topic.