Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:
A) should never reveal their future dealing intentions to their counterparties
B) should make clear their intention to do so when initially negotiating the deal
C) should agree upon the method of assignment before transacting
D) should only reveal any such intentions after the confirmations have been exchanged

Question

Quizplus · Accepted Answer

It is best practice for principals to disclose their intention to assign or transfer the interest rate swap to a third party when initially negotiating the deal. This allows for transparency and can help avoid any misunderstandings or disputes in the future.

Principals Who Enter into an Interest Rate Swap with the Intention