Rollercoaster Swap definition explanation

What is Rollercoaster Swap?
A seasonal swap providing flexibility of payments at predetermined periods to best meet the counterparty’s cyclical financing needs or other requirements. Read more for examples and further explanation including related video clips and also comments

Example explains Rollercoaster Swap
This swap has fluctuating payments so that the counterparty can match cash flows to transfers, periodic financing obligations or seasonal factors.

For example, an international company that sells lawn mowers might have a keen interest in a rollercoaster swap because it can match swap payments with the seasonal demand for lawn mowers.

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