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These are FX swaps, so you can't really say that "it is what it is." Currency and interest rate fluctuations can cause massive changes to the market. The pound
by halpmeh 4y ago
These are FX swaps, so you can't really say that "it is what it is." Currency and interest rate fluctuations can cause massive changes to the market. The pound literally almost collapsed just a few weeks ago due to interest rate swaps forcing a fire sale on gilts.
- danielmarkbruce 4y agoThey can. It did. It is what it is.
- halpmeh 4y agoAnd then the Bank of England intervened because they saw trouble in the market. That's not "it is what it is." That's "with proper insight into important market positions, economic catastrophe can be avoided."
- danielmarkbruce 4y agoCentral banks have monitored derivatives markets for decades, will continue to do so and will step into the markets as a backstop from time to time. It's not going anywhere. FX swaps are critical for global trade and investment.