Results for tag: "Swaps"

The Swaps market is a financial market in which two parties agree to exchange cash flows at predetermined intervals. These cash flows are based on the underlying asset, which can be a currency, commodity, equity, or interest rate. Swaps are used to hedge against risk, as well as to speculate on the direction of the underlying asset. Swaps are also used to manage liquidity and to facilitate hedging strategies. Swaps are traded over-the-counter (OTC) and are not subject to the same regulations as other financial instruments. This allows for greater flexibility in terms of pricing and risk management. Swaps are typically traded between large financial institutions, such as banks, hedge funds, and insurance companies. Some of the major players in the Swaps market include JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America, Morgan Stanley, and UBS. Other participants include hedge funds, insurance companies, and other financial institutions. Show Less Read more