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A Swap Bank Has Identified Two Companies with Mirror-Image Financing

Question 24

Multiple Choice

A swap bank has identified two companies with mirror-image financing needs (they both want to borrow equivalent amounts for the same amount of time. Company X has agreed to one leg of the swap but company Y is "playing hard to get".


A) If the swap bank has already contracted one leg of the swap, they should be anxious to offer better terms to company Y to just get the deal done.
B) The swap bank could just sell the company X side of the swap.
C) Company X should lobby Y to "get on board".
D) Both a and b

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