Questions from Multinational Business Finance


Q: How do corporate borrowers use interest rate or cross currency swaps to

How do corporate borrowers use interest rate or cross currency swaps to reduce the costs of their debt?

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Q: Why would one company with interest payments due in pounds sterling want

Why would one company with interest payments due in pounds sterling want to swap those payments for interest payments due in U.S. dollars?

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Q: Why are there significantly larger swings in the value of a cross

Why are there significantly larger swings in the value of a cross-currency swap than there is in a plain vanilla interest rate swap?

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Q: How does a company cancel or unwind a swap?

How does a company cancel or unwind a swap?

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Q: Why has LIBOR played such a central role in international business and

Why has LIBOR played such a central role in international business and financial contracts? Why has this been questioned in recent debates over its value reported?

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Q: How does organized exchange trading in swaps remove any risk that the

How does organized exchange trading in swaps remove any risk that the counterparty in a swap agreement will not complete the agreement?

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Q: What is a credit risk premium?

What is a credit risk premium?

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Q: What are the three stages of a cross-border acquisition?

What are the three stages of a cross-border acquisition? What are the core financial elements integral to each stage?

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Q: From the point of view of a borrowing corporation, what are

From the point of view of a borrowing corporation, what are credit and repricing risks? Explain steps a company might take to minimize both.

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Q: What is a credit spread? What credit rating changes have the

What is a credit spread? What credit rating changes have the most profound impact on the credit spread paid by corporate borrowers?

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