A zero-recovery swap in which one counterparty receives a weaker currency and pays a stronger currency while the other counterparty receives the stronger currency and pays the weaker one. In other words, the swap entails the exchange of two different FX rates, allowing one counterparty to have more default gain than default loss.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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