Swap-driven Primary Issuance

It is often relatively cheaper for a United States-based borrower to use the US$ bond market, but the borrower's liability management objective may be to borrow D-marks and pay floating rates. The United States-based borrower may find it expedient to issue US$ bonds and swap with a relatively more efficient D-mark floating rate borrower. The choice of markets for the primary issuance is driven by the combination of swap opportunities and that market's relative cost to the borrower.

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