Dutch RMBS cap replaces interest rate swap.

• Autores: Danielle Myles
• Localización: International financial law review, ISSN-e 0262-6969, Vol. 33, Nº. 9 (Oct2014), 2014
• Idioma: inglés
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• Resumen

  • The article reports that the residential mortgage-backed securitization deal named Arena NHG 2014-1 from Delta Lloyd has used an interest rate (IR) cap from ABN Amro instead of the traditional swap agreement to limit IR risk. Topics covered include the factors contributing to the difficulty in transferring IR swaps, the advantages of a cap over a swap, and the swap collateral criteria of rating agencies.