Being an active bank in Vietnamese money market, MB owns a team of experienced traders and sale dealers that can provide you products and services with competitive prices.
Interest rate swap:
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities.
Purpose
- Hedge against adverse movements in interest rate
- Changing from floating to fixed interest rate (without changing others conditions) to reduce interest rate risk of rising (Incase customers are borrowing floating rates)
- Changing from fixed to floating interest rate to reduce interest rate risk of falling (Incase customers are borrowing fixed rates)
Characteristics
- Term of interest rate swap contract is maximum 5 years from value date
- No principal is exchanged and no premium is paid
- Total payments is caculated from the difference bettween fixed and floating rate on the setlement date (multipilied by the notional principal)
Type of currency
- Between VND and other foreign currencies or foreign currencies with one another.
For further information, please contact MB transaction offices all over the
country. Contact MB
