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Tag Archives: variable rate loan

COMMERCIAL FINANCE 701 — Swapping a floating rate for a fixed rate

In the commercial loan world, pricing is frequently tied to a floating (variable) rate index, which places the risk of a rising interest rate squarely on the borrower.  Depending on the term and size of the loan, the underlying financial strength of a borrower, risk aversion, and soothsaying predictions about the direction of interest rates, a borrower might want to ...

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