Tag Archive: risk

May 12

Why Interest Rate Swaps are not Fixed Rate Loans

Simple Swap

As noted in our previous article at the Guardian’s Ripped Off Britons, Interest Rate Hedging is complex. Here we focus more on simple ‘Vanilla’ Swaps. As many bank customers have found out to their peril, an Interest Rate Swap is not the same as a Fixed Rate Loan. Banks will tell you they are, they will give …

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Feb 23

RBS Bonuses – Are we the idiots?

Now, the news is RBS is paying out £785m in bonuses and makes a £1.1Bn loss – the sums here don’t work. £1.1Bn – £785M = £315m loss if you don’t pay the bonuses. No our maths are wrong, RBS received £20Bn alone in the first round of bank bailouts…..why any bonuses until this is …

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