文档介绍：Lecture#5:--,thetwobasickindsofswapsareinterestrateswapsandcurrencyswaps.·       TheSwapsMarket-        Swapsarecustomtailoredtotheneedsofthecounter-parties.-        Theswapsmarkethasvirtuallynogovernmentregulation.-        Defaultrisk-        ValueofOutstandingSwaps($BillionofPrincipal),,,,,,,,-        PlainVanillaSwapsInterestrateswapsCurrencySwaps-        mercialneeds:Asanexampleofprimecandidateforaninterestrateswaps,-?parativeadvantage:Inmanysituations,,.,,%7%USfirm9%8%·       InterestRateSwaps-        ,oneparty'spaymentsarebasedonafixedratewhereasitscounterparty'.-        Example:BothAandBneedtoborrow$:%6-monthLIBOR+%%6-monthLIBOR+%-        ,?1.     IfAdesiresthefloatingratedebtandBprefersthefixedratedebt,thereisnoneedforthemtoeng