Convert the us bonds to aud

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USD500m Fixed USD Bonds (issued in USA) for 10 years (arranged by Vector Bank and others) USD250m Fixed/Fixed USD/AUD Cross Currency Interest Rate Swap resulting in A$ fixed interest rate USD250m USD Fixed / AUD Floating (BBSW) Cross Currency Interest Rate Swap resulting in A$ floating rate borrowings. The above transactions have been agreed to by a client where the client has agreed to allow the interest cost to remain variable , except in a situation where interest rates a 3% higher than current rates, considered a probability of 50% or less.

Are the hedging products proposed to convert the US Bonds to AUD and manage any interest rate risk likely to meet the client's requirements?

Reference no: EM133075692

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