This article focus to Discuss on Uses of Rate Swaps. Rate swaps are agreements made between two specific parties that allow these parties to change one interest rate pertaining to another. For instance, many companies can use this type of swap to exchange a fixed payment for one that may be floating. Here briefly explain why Interest swaps are used: Risk, Cost, Profits and Debt. Here also briefly explain how these swaps are used. Most companies use such a swap to reduce the exposure to fluctuations available in the market or to obtain lower interest rates.
