Two limitations of interest rate swaps are that there is a cost of time and resources associated with searching for a suitable partner and that there is a risk to each swap participant that the counterparticipant could default on his payments.

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These are indeed two limitations of interest rate swaps. The search for a suitable partner takes time and resources, and there is always a risk that the counterparticipant could default on their payments, leaving the other party at a loss.

Two Limitations of Interest Rate Swaps Are That There Is