Oracleyoda
New Member
David,
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?
Thanks
Wayne
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?
Thanks
Wayne