ABN Amro launches IR Mini-Swaps for the risk averse

MiniSwaps are open-ended securities that, unlike options, have no time-value and are linked directly to current interest rates. Nayan Thanky, a trader on the structured products desk at ABN Amro in London, said the product would be useful for small enterprises that do not have strong credit lines or are reluctant to use derivatives. "We also think larger institutions that want to gain exposure to interest rate hedging but want to preserve their credit lines may find the facility useful."

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