If you enter into an interest rate swap,the company taking the opposite side is called:
A) The swap payer.
B) The swap counterparty.
C) The swap maker.
D) The off-taker.

Question

Quizplus · Accepted Answer

The company taking the opposite side in an interest rate swap is typically called the swap counterparty. This is because they are entering into the swap agreement in order to hedge against their own interest rate risks, and are therefore taking the opposite side of the swap to the other party involved. The other answer choices (A, C, and D) are less commonly used or less accurate descriptions of the counterparty in an interest rate swap.

If You Enter into an Interest Rate Swap,the Company Taking