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Most (77%) swaps are interest rate swaps.
There are interest rate swaps, in which one side essentially bets that interest rates will not go up.
"Leadership has clearly shifted to sectors that are interest rate sensitive," said Jim Paulson, chief investment officer at Wells Capital Management.
One particular area that Citadel has targeted are interest rate swaps, an instrument that companies traditionally used to protect themselves against swings in interest rates.
The main events today are interest rate and quantitative easing decisions at the Bank of England and European Central Bank, as well as services data from the UK and major eurozone economies.
Understandably, much press coverage has been devoted to those personal mortgages and credit cards which use Libor as a reference rate, but the major products which are affected by it are interest rate swaps.
Similar(51)
Next are interest rates.
Why are interest rates so low?
Why are interest rates so low in Australia?
When are interest rates expected to rise?
There is a central bank, there are interest rates.
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