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Sure I’m pro-risk management. So by arbing lending-rates which risks are mitigated?
by tech_ken 3y ago
Sure I’m pro-risk management. So by arbing lending-rates which risks are mitigated?
- tylerhou 3y agoE.g. interest rate risk. Maybe I've sold a bunch of variable-rate bonds before. But now I am worried about interest rates rising. I can't call the bond for some reason (maybe not enough money, maybe some regulatory reason). So I buy an interest rate swap that pays out if interest rates rise.
- deleted 3y ago[deleted]