Buy custom Jaguar plc, 1984
Essay's paper info
Topic: |
Business
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Number of pages / Number of words: |
18 / 4896 |
Essay's paper body
This is achieved by the investor bearing the default risk of the issuer on the underlying municipal bond. Specifically, if the issuer of the underlying municipal bond defaults, the investor loses the right to put the bonds to the liquidity bank and the liquidity facility is automatically reduced by the amount of the bonds in default...
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Specifically, if the issuer of the underlying municipal bond defaults, the investor loses the right to put the bonds to the liquidity bank and the liquidity facility is automatically reduced by the amount of the bonds in default.
Interest Rate Swap
As indicated above, the sponsor (MLCS in Merrill's case) creates a TOB through the combination of a long-term municipal bond and an interest rate swap...
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