Swaps

Presented By: Imad Ahmad Juzer Abbas Muqaddas Ali Sana Maqbool

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

YOU Original Counter Party Swap Counter Party Cash flow Stream A Cash Flow Stream A Cash Flow Stream B

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Fixed Rate Floating Rate Company A 11% LIBOR + 1% Company B 10% LIBOR + 0.5%

Lender Bank B A Libor + 1% 10% 9.7% Libor 9.8% Libor Gain = 0.1% After Swap: A --- 9.8% + 1 % B --- Libor + 0.3%

[object Object],[object Object]

[object Object],[object Object],Current Jan 1 st 1 st Leg A Buy $100 @ 80 Rs/Dollar From B Forward April 1 st 2 nd Leg A will Sell $100 @ 90 Rs/Dollar to B If Market Value of Dollar is 85Rs/Dollar or 95Rs/Dollar

Current Jan 1 st Swap Agreement 2 nd Leg Apr 1 st A will sell $100 @ 90 Rs/Dollar to B Market Value of Dollar Rs.85/Dollar or Rs.95/Dollar 1 st Leg Jan 15 th A will Buy $100 @ 80 Rs/Dollar From B

Corporation Lender Swap Counter Party USD Loan USD Loan AUD Loan

Thank You for Your Patience 

Swaps

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