INTEREST RATE SWAP (IRS)
IRS is an agreement between two parties to exchange interest payment series (fixed to float, float to fixed, or float to float) in the same currency.
- IRS is performed to hedge credit/liability exposure from interest rate movements.
- Efficiency and flexibility of a customer's financial profile can be adjusted to Company's cash flow needs.
- IRS transaction is made in private agreement, so other party cannot know the transaction that has been agreed both in cash flow and profit loss.
- Customers can adjust the float and fixed composition of their assets or liabilities.