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- 2011-7-11
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2#
发表于 2011-7-11 19:54
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Think about it from an administrative back office perspective. If you settle in cash you will have completely removed the swap from your books, which is what you want.
Settling in cash is superior to simply entering into an offsetting swap because if you offset it with another swap you will have to receive and make payments each period on the swaps. Administratively this is not ideal, as you would be responsible for managing all of the cash flows from now until the swaps' expration dates.
Also, realize that swaps are traded over the counter, and they are not typically exchange traded (yet!). If this were a future for example it could be ideal to enter into an offsetting position. However, as this is an OTC instrument, the ideal solution would be to simply settle in cash rather than bothering with receiving and making cash payments from now until the swaps' expriation. |
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