The Financial Services Authority (FSA) said Santander UK, Allied Irish Bank, Bank of Ireland, the Co-operative Bank and Clydesdale and Yorkshire banks had agreed to adopt the same approach being used by the UK's biggest banks in offering redress to firms mis-sold interest-rate swaps
The product, called the NASDAQ OMX Interest Rate Swap (NOIS), is a futures contract for interest-rate swaps that makes it possible to obtain exposure to the SEK swap curve.
Trading on the Swedish interest-rate swap market averaged daily about $12 billion during April 2007 according to the Bank for International Settlements.
A report on LDI released earlier this year by Russell Investments suggests that the fall-out from the problems experienced by complex mortgage securities might scare plan sponsors away from employing LDI strategies involving derivatives, such as interest-rate swaps.
One common way to do that is to put on an interest-rate swap that lengthens the duration of the plan's assets to bring it closer to the duration of the liabilities.
Many taxpayers enter into interest-rate swaps to hedge debt instruments.
In light of this ruling, it may be advisable for taxpayers to review their treatment of interest-rate swaps and determine if they have been under-or overreporting gain or loss from terminated hedged transactions.
Rice Financial carves out a profitable niche in the municipal interest-rate swaps market
For Rice, 41, it's meant building his firm into an operation specializing in municipal interest-rate swaps, one of several types of securities known as derivatives.
While no promulgated guidance for interest-rate swaps
and other derivatives exists, generally accepted practices have emerged.
Fitch believes the use of floating-rate debt by hospitals and health care systems will continue to grow over the long term as a result of more sophisticated asset/liability strategies and the growing acceptance of and comfort with interest-rate swaps
by health care management and boards.
Interest-Rate Sensitivity--The three middle options on the chart come from the evolving market of modern hedging techniques, in which interest-rate swaps
and caps are very popular.