Suppose the fixed and variable costs of capital of a manufacturing company are 11.5 percent and LIBOR plus 0.5 percent, respectively. Similarly, a financial institution’s costs are 10.5 percent and LIBOR, respectively. Considering the way these institutions generate operating cash flows it is more advantageous for the manufacturing company to take the fixed-rate loan while the opposite is true for the financial institution. If you are a swap dealer, what can you do for these companies so that they both can benefit?
对于swap不是很明白。看书时也都很晕。
希望高手帮忙解答一下.谢谢。