So, the earlier discussion of swaps prices showed that peeps here do indeed know their interest rate swaps from their elbows.
So what we have here is a housing charity carrying some £5 million of floating rate debt. They rather think that now might be a good time to swap that into fixed rate debt. For some period. Our man on the case is a beancounter, knows his tax stuff, but isn\’t entirely and completely au fait with the actual details of how all these things work. From the academic side of the profession.*
He\’s just got a feeling that the prices he\’s being shown by the charity\’s bank look high, tens of bps high.
So there are three questions from them:
– is £5 million enough to get a decent rate from a dealer?– does anyone have contact details for 3 decent dealers who will give us quotes?– do you know someone who can explain what that quote means for us ignoramuses?
So, anyone any ideas?
* No, obviously it\’s not Ritchie. It\’s only the right wing plutocrats who spend unpaid time trying to house the poor and disabled. The progressive just demand that people be taxed more to do it.