Benefits of interest rate swaps, Financial Management

Assignment Help:

Q. Benefits of Interest rate swaps?

Interest rate swaps may provide several benefits to companies including:

- The ability to get finance at a cheaper cost than would be possible by borrowing directly in the relevant market.

- The opportunity to efficiently restructure a company's capital profile without physically redeeming debt.

- Long-term hedging beside interest rate movements as swaps may be arranged for periods of several years.

- The ability to access a kind of finance which could not be accessed directly for instance because the borrower is relatively unknown in the market or has a relatively low credit rating.


Related Discussions:- Benefits of interest rate swaps

Disadvantage or redundancy of excessive working capital, Q. Disadvantage or...

Q. Disadvantage or redundancy of excessive working capital? Excessive working capital means idle funds which earns no profit for the business operation it should have nighters

Review a health care oranization and its fin. operat, i need help writing a...

i need help writing a paper on a healthcare organization and reviewing its financial operations based on data available from 6 sources

Importance of a sinking fund, "The emphasis on the practice of good corpora...

"The emphasis on the practice of good corporate governance has brought about more negative than positive implications to public-listed companies". Do you agree with the above st

Credit spread risk, A credit spread refers to the difference in inter...

A credit spread refers to the difference in interest rate between a corporate bond and a comparable maturity government bond. Suppose interest rate on a five-year

The selling process, The Selling Process The four key elements that con...

The Selling Process The four key elements that constitute the selling process are: (i) identification of prospective buyers, (ii) selection of the type of selling process to be

Write a note on underwriting, Question 1 Explain the components of Indian ...

Question 1 Explain the components of Indian Financial System Question 2 Write a short note on Primary and Secondary markets Question 3 Explain the Investment optio

Calculate the economic order quantity, Q. Calculate the Economic Order Quan...

Q. Calculate the Economic Order Quantity? Calculate the Economic Order Quantity from the following details: Annual Inventory Requirements = 4, 00,000 units Cost of placin

Objectives of averaging, The two main objectives are: ...

The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single

What is disadvantages of irr method, Q. What is Disadvantages of IRR Method...

Q. What is Disadvantages of IRR Method ? Disadvantages of IRR Method:- (i) Computation of IRR involves tedious calculations. (ii) Occasionally this method produces more t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd