Sorry for this question, but I still get confused who’s long what currency and who’s short in a currency swap.
Let’s say at origination of swap, A sends B USD100 M and receives the equivalent of USD 100M in JPY.
In this case, A is long the USD and short the JPY, is that correct?
I suppose this is the same as if A bought a USD100 M bond from B and receives USD interest payments. Is that a correct way to think about it?
Over the life of the swap, A pays B coupon payments in JPY, and B pays A coupon payments in USD. Then at the end of the swap, A gets the notional amount in USD back and B gets notional amount in JPY back.