24-31 The credit risk on an interest rate swap is generally much less than on an individual loan.

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The credit risk on an interest rate swap is typically lower than on an individual loan because the swap is an agreement between two parties to exchange cash flows based on a benchmark interest rate. In contrast, an individual loan is a direct extension of credit from one party to another, which carries a higher credit risk. However, it's important to note that there is still some degree of credit risk associated with interest rate swaps, particularly if one of the parties defaults on their payment obligations or if there is a market disruption that affects the performance of the swap.

24-31 the Credit Risk on an Interest Rate Swap Is