The businesses have all claimed that banks profited at their expense and many were unaware of the significant costs attached to the products that were supposed to protect them from upward movements in interest rates.
Typically sold between 2006 and 2008, businesses found themselves paying far higher rates of interest than they expected as Bank base rates fell to historic low rates.
Err, yes, that\’s what happens with swaps and futures. You remove uncertainty on the upside and replace it with certainty on the downside.
If you\’re too dim to get this you\’re too dim to be in business.