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Risks of Range Accrual Swaps Today by meshael Fahad is a document available to read on EtoBox.
The article discusses range accrual swaps (RAS), a type of interest rate derivative product. RAS allow companies to receive a fixed interest rate subsidy if underlying interest rates stay within a predefined range. However, if rates rise above the range, companies face unlimited losses. The recent surge in interest rates, with SAIBOR reaching over 5.78%, has severely impacted companies with RAS in their portfolios. Alternative hedging strategies that limit downside risk, like interest rate collars, may be p
- Author
- meshael Fahad
- Language
- EN