Credit Risk is at its highest in the middle of the term only for equity and interest rate swap, what about currency?
In currency you actually swap cash so I believe risk is skewed towards the end because in case of counterparty bankrupcy you have to return cash and file a claim for the amount you are owed… someone please correct me of Im wrong
Thanks! I believe that is correct!
i concur, because you gots to pay back the full amt