Internationally, banks have consistently lost to cities and other governmental entities in litigation
over interest rate swaps.
Not exact matches
A little
over half of the turnover in Asian
interest rate derivatives is in OTC instruments such as fixed for floating
swaps, many of which are centrally cleared (Graph 5, LHS).
3 - month interbank
interest rates in Australia peaked at
over 7 per cent in mid September, more than 50 basis points above the corresponding
rate that measures expectations of the cash
rate (the overnight indexed
swap rate: OIS)(Graph 2).
There are a number of reasons why companies prefer to combine variable -
rate loans and
interest -
rate swaps over fixed
rate loans.
Because these cash flows occur throughout the life of the loan, they are computed using the longer term, 10 - year
swap interest rate, as it represents a forecast of future short - term
rates likely to be realized
over the life of the loan.
Wingate, a subsidiary of Guardian Care Homes, has brought an
interest rate swap claim, against Lloyds, alleging that a 2011 settlement
over swap mis - selling should be overturned because of the bank's libor fixing.
The Financial Conduct Authority's compensation scheme has led to the settlement for
over 13,000 claimants with
interest rate swap agreements worth about # 2 billion, so if Wingate is successful the case could become a catalyst to further similar legal claims against the banks.
In Bolt Burdon v Tariq & Ors [2016] EWHC 811 (QB), Tariq and the other defendants asked the firm to represent them on a contingency fee basis in a claim against AlIied Irish Bank
over a mis - sold
interest rate swap.
Representing a European Bank
over many years in a series of interbank disputes arising from the conduct, execution and settlement of derivative transactions, including,
interest rates swaps, currency
swaps, bonds and repo trades on Eurex, OTC options, credit default
swaps, and an Argentinian MTN programme.
Conduit
interest rates depend largely on the yield that investors demand for CMBS, which spiked up in May for AAA -
rated CMBS from about 80 basis points
over the
swap rate to about 130 basis points in July, according to data from Commercial Mortgage Alert.