Counter parties go bankrupt all the time. Usually you’re faced with not receiving floating or not paying floating, and loss of your upfront fees for the contrac

Counter parties go bankrupt all the time. Usually you’re faced with not receiving floating or not paying floating, and loss of your upfront fees for the contract. This isn’t a huge blow usually. Sometimes swaps blow up a counter party and you can’t get a windfall because they can’t pay it, but this isn’t a material loss but an opportunity loss.