Interest Rate Swaps

Discussion in 'Innovative Property Investment Techniques' started by LibGS, 8th Mar, 2018.

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  1. LibGS

    LibGS Well-Known Member

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    I've ask this before and no one responded, but it's worth another try.

    Has anyone ever used interest rate swaps to hedge against interest rates going up or down?

    Interest rate swaps
     
    LibGS, 8th Mar, 2018
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  2. Perthguy

    Perthguy Well-Known Member

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    No, because I don't have borrowings of $1,000,000 or more with one lender

     
    Perthguy, 8th Mar, 2018
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  3. LibGS

    LibGS Well-Known Member

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    Impatient one, you should read it all.

     
    LibGS, 8th Mar, 2018
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  4. Perthguy

    Perthguy Well-Known Member

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    Perthguy, 8th Mar, 2018
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  5. Trainee

    Trainee Well-Known Member

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    They also have this new thing called a fixed rate loan. Probably invented by those alphabet soup witches on wall street tho......
     
    Trainee, 8th Mar, 2018
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  6. LibGS

    LibGS Well-Known Member

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    I'll call them today and let you know what they say.
     
    LibGS, 8th Mar, 2018
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  7. Toby

    Toby Well-Known Member

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    I guess the benefit of doing this, as compared to fixing loans is:

    • Facilities remain floating, therefore there is more flexibility
    • You could take out on swap for your entire portfolio - rather than negotiating a fixed rate with every institution you've financed with

    Just make sure you don't get ripped off!
     
    Toby, 8th Mar, 2018
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  8. Perthguy

    Perthguy Well-Known Member

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    Thanks! It's certainly an interesting concept and could be useful for some.
     
    Perthguy, 8th Mar, 2018
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