in a plain vanilla interest rate swap, which party would be considered the long? the fixed rate payer?作者: zhaoyp 时间: 2011-7-13 16:57
conventionally in the marketplace long or short in the context of a swap or a swaption is always with respect to the fixed leg, i.e. fixed payer is long and fixed receiver is short. But I would expect this will be given unequivocally in the exam tomorrow作者: FinancialAnaly 时间: 2011-7-13 16:57
I would think so... he is paying to receive the floating payments. so he is in essence by the floating unknown payments...
