Black Corporation, a large Australian company, can borrow funds at the BBSW+60bps in the money market or at 8% fixed in the corporate bond market.It prefers a fixed rate exposure.Blue Bank can borrow at the BBSW by issuing CDs or at 6.8% fixed and prefers a floating rate exposure.Explain how a swap can be arranged to the advantage of both parties assuming savings are evenly shared.

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The Answer of Black Corporation, a large Australian company, can borrow funds at the BBSW+60bps in the money market or at 8% fixed in the corporate bond market.It prefers a fixed rate exposure.Blue Bank can borrow at the BBSW by issuing CDs or at 6.8% fixed and prefers a floating rate exposure.Explain how a swap can be arranged to the advantage of both parties assuming savings are evenly shared.

Black Corporation, a Large Australian Company, Can Borrow Funds at the BBSW+60bps