who uses interest rate swaps?
156169
Ineterest rate swaps, in particular "fiexd to floating" or "plain vanilla" are used by many companies and even by privats. They aren't too expensive and very useful.\nExample: you invested you money at a fixed interst rate but you expect the rates to grow up. You can use a IRS to transform your investment in order to benefit from rising rates.
428240
(m)\n\nA credit derivative is an OTC derivative designed to transfer credit risk from one party to another. By synthetically creating or eliminating credit exposures, they allow institutions to more effectively manage credit risks. Credit derivatives take many forms. Three basic structures include: \n\ncredit default swap: Two parties enter into an agreement whereby one party pays the other a fixed periodic coupon for the specified life of the agreement. The other party makes no payments unless a specified credit event occurs. Credit events are typically defined to include a material default, bankruptcy or debt restructuring for a specified reference asset. If such a credit event occurs, the party makes a payment to the first party, and the swap then terminates. The size of the payment is usually linked to the decline in the reference asset's market value following the credit event. \n\ntotal return swap: Two parties enter an agreement whereby they swap periodic payment over the specified life of the agreement. One party makes payments based upon the total return—coupons plus capital gains or losses—of a specified reference asset. The other makes fixed or floating payments as with a vanilla interest rate swap. Both parties' payments are based upon the same notional amount. The reference asset can be almost any asset, index or basket of assets. \n\ncredit linked note: A debt instrument is bundled with an embedded credit derivative. In exchange for a higher yield on the note, investors accept exposure to a specified credit event. For example, a note might provide for principal repayment to be reduced below par in the event that a reference asset defaults prior to the maturity of the note. \n\nThe fundamental difference between a credit default swap and a total return swap is the fact that the credit default swap provides protection against specific credit events. The total return swap provides protection against loss of value irrespective of cause—a default, market sentiment causing credit spreads to widen, etc.
1185458
On a net basis, no one.  In real terms, higher interest rates are a result of inflation which is an asset transfer usually from the poor to the rich.  However, there can be no profit if rates rise and no real transfer.\n\nNow, there are individuals and organizations who personally benefit and others who lose.  On average, everything is neutral.  Anyone holding cash, variable rate instruments or short long dated fixed rate instruments is ahead.  Anyone fully invested, holding fixed rate instruments or short floating rate securities is losing.  Commodity prices tend to fall as rates rise, existing owners tend to lose, but consumers then buy things at lower costs and win an equal amount (or approximately).
41295
go to yahoo curency exchange rates, because the rates are always changing
870729
Depends on the business I guess. Your second question affects the first. So I'll try to answer that first. An increase in interest rates usually drives up the value (strength) of the currency. The higher the interest rate, the more foreign money and banks themselves invest in that currency driving up its value due to supply and demand laws.\nIf they are an exporter, then that is bad news as it becomes dearer for customers abroad to buy their goods and so they lose business. For importers the opposite applies it being cheaper for customers here to buy imported goods due to the strength of the currency which buys you more(more bang foryour buck).\nRemember though that if, as most companies have to, that they have to borrow money to invest, then higher rates are obviously a disincentive. However higher rates keep down inflation which is of course is a good thing. You are right to be confused as there is no single, easy solution.Otherwise governments would just keep raising rates or freezing them. Like all markets,balance must be maintained.
361454
Generally, the interest rate elasticity and the duration are used.  The first is the change in value based on the change in rates.  The second is the maturity of a zero with the same elasticity as the given rate/value.\n\nThere's a bunch of math behind it and you can look at the paper below.
237219
you should check a realtime currency converter for that, then u know the up-to-date rates. \n\ni always use XE.com i donno if it's so realtime, but it works for me.
847406
Northern Ireland and Scotand are component states of the UK and use the British pound sterling.\nMonaco was using the French franc and switched to the Euro when France did. (San Marino and the Vatican were using the Italian lira and switched to the Euro when Italy did. Monaco, San Marino, and the Vatican all strike their own Euro-denominated coins.)\nLiechtenstein uses the Swiss franc.
588909
I'm in Ireland, and I think they will here - usually the markets are pretty similar.  I went for a five year fixed with mine, and I'm already glad I did 6 months into it.
612936
Ab-so-fricken-lutely. There's a but. You need to have educated friends in the fiancial arena because the markets change just when you least expect them too. And timing the market ain't easy. Here's an article by Jim Jubak at moneycentral which includes a tidbit on these contracts.
359566
They can change interest rates and buy/sell bonds on the open market.  I don't remember the last.  They probably use bonds the most often because the government uses that to finance itself.
465201
No. You always have to pay a fee, unless you find a person yourself interested in exchanging the same amount of C$ to US$ as you want to change US$ to C$, for a rate that you can both agree on. It would be very unlikely that this would happen so just pay the fee and let brokers and dealers do all the work.
128196
Japan, China, England for starters and if they started selling it on the open market because they were pissed at us you would have very high interest rates and maybe no job!
989073
ICICI Bank exchanges the currencies. There are always two rates as fixed by the Reserve bank of india on day-to-day basis, the buying rate and the selling rate. The currencies are exchanged at the fixed rates of the RBI and no separate commission is charged by the Bank.
494472
I use one.  It help a companies' cashflow as a factoring company buys your accounts receivable for a percentage, maybe 2-4% on average depending on your companies' credit as well as the credit of the company that owes you.  They buy it up front, rather then you having to wait net 30, 60, or 90days and you can grow your business and make your payrolls, bills etc..
1058533
from what  know the government of India sets interest rates with the Indian central bank. The central bank of India like most Asian central banks is able to compel banks to change their rates similar to what we used to have in Australia.if they are floating the rupee then the indian central bank will probably use open market operations to manipulate the interest rate. ie they will sell bonds on the market to dry up liquidity and put interest rates up or they buy bonds to increase liquidity and reduce interest rates.
693037
I think most people don't really take into account the current interest rate when saving.  Even though they have gone up, they're still pretty low, if you look back at history.\n\nI might be enticed into buying some long-term bonds if they go into double digits, but by then the economy will look a bit strange.\n\nPersonally, I haven't changed my habits from the rise in interest rates.  They're still too low to worry about right now.