is a fixed-for-floating swap: turn a pay fixed into pay float or turn a pay float into pay fixed?
Fixed rate asset: Pay fixed receive float gives you floating rate asset Fixed rate liability: Pay float receive fixed gives you floating rate liability Floating rate asset: Pay Fixed receve float gives you fixed rate asset [and you can do the last one]
Fix-for-float ==>Pay fix payment to recieve float payment. They must have a float liability. Yes, they are trying to convert a floating bond to a fix bond.
Fixed for floating swap can be used to exit an existing swao wherein you are the floating rate payer and fixed receiver
gotcha. thx.