Merle Haggard
Established Member
Obviously rate deal was done at is commercially sensitive, but was probably close to that. The whole purpose of interest rate swap deals is to lock in fixed rate at the time, the other party (usually a big multinational financial institution or bank) takes risk of rates going up or down, they might gain or lose, but will probably have part of it covered by other deals, loans in vs loans out etc.
Thanks, interesting.
Bearing in mind that, historically, interest rates have pretty much always been above 2% it seems an 'interesting' decision to think they'll remain so low for so long into the future. Even if the party taking on the risk has laid it off, then that party must have believed similarly.