0136091008_PPTsM09_Eiteman0136091008_12_MBF_C09课件.pptVIP

Chapter 9 Interest Rate and Currency Swaps Interest Rate Risk All firms – domestic or multinational, small or large, leveraged, or unleveraged – are sensitive to interest rate movements in one way or another. The single largest interest rate risk of the nonfinancial firm (our focus in this discussion) is debt service; the multicurrency dimension of interest rate risk for the MNE is of serious concern. Management of Interest Rate Risk The second most prevalent source of interest rate risk for the MNE lies in its holdings of interest-sensitive securities. Unlike debt, which is recorded on the