A combination of different types of swaps that aims to spread the risk associated with a sizable financing endeavor. For example, a cocktail swap could combine a currency swap and an interest rate swap, involving more than two counterparties, currencies and/ or interest rates. A bank may use a cocktail swap to balance its exposure to a set of exchange rates and interest rates while offsetting its inflows and outflows.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments