Margin on a currency swap

Discussion in 'P1.T3. Financial Markets & Products (30%)' started by Oracleyoda, Sep 26, 2009.

  1. Oracleyoda

    Oracleyoda New Member


    I would like to confirm my logic on this topic.

    If I were creating a swap for a client;

    Client pays AUD and recieves USD (Client is Australian hedging USD Loan) both rates are fixed.

    Clients loan is 125Bp above the fixed swap rate. I want to add 125 Bp to the USD side of the swap to match their interest cash flow perfectly.

    What is the best method to calculate the corresponding A$ fixed rate?


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