The primary risk in swaps is that:
A)Interest rates will not change.
B)One of the parties will default.
C)They are highly liquid and the market price will change.
D)High U.S.government deficits will limit the availability of swaps.

Question

Quizplus · Accepted Answer

The primary risk in swaps is counterparty default, meaning that one of the parties involved in the swap agreement fails to fulfill their obligations. While the other options are factors that can affect swaps, they are not the primary risk.

The Primary Risk in Swaps Is That