The range of derivative products is limited
only by the human imagination. Therefore, it is
not unusual for financial derivatives to be
merged in various combinations to form new
derivative products.
For instance, a company may find it
advantageous to finance operations by issuing
debt, the interest rate of which is determined
by some unrelated index. The company may have
exchanged the liability for interest payments
with another party. This product combines a
Structured Note with an interest
rate Swap.
Conclusion
14 years ago
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