However, the financial tool innovation of interest rate swaps, where the bank swaps
its fixed:rate assets with a counterparty that has floating rate assets, solved this problem something that had plagued the banks ever since they were first created.
Indeed, the biggest innovation was the bilateral central bank swaps
line between People's Bank of China and seven Asian central banks, (2) totalling RMB1.4 trillion (US$226 billion) (Zhu 2015).
Global Banking News-January 7, 2016--Argentine central bank swaps
notes for sovereign bonds
Global Banking News-December 17, 2010--Irish bank swaps
increase(C)2010 ENPublishing - http://www.enpublishing.co.uk
Roughly $1 trillion of the new assets were in short-term credit facilities, including foreign central bank swaps
I would have told them, "You swap your Treasury bills into bank swaps
, subordinated debt, which we are also helping to guarantee." That would have achieved two effects: it meant that you would have been able to recapitalise your banking system.
He describes the different methods of hedging, including wet barrel programs, futures and options, bank swaps
and inventory financing, gives information on fundamental and technical analysis, examines seasonal tendencies and market psychology, and gives his take, based on long experience, on a host of trading adages, both good and bad.