Interest rate swap market maker
A swap dealer is a market maker of swaps and assumes a risk position in matching Interest rate swaps can assist in market completeness. That is, a borrower may use a swap to get out of one type of financing and to obtain a more desirable type of credit that is more suitable for its asset maturity structure. very sizeable part of the nancial system. In this market, derivatives, repurchase o ers, or bonds are traded among banks and institutional investors. By accounting for around 60% of the total gross notional volume of OTC derivatives, the largest single segment is Interest Rate Swaps (IRS).