Never read the article so just shooting from the hip. Guessing it is just a contract between two parties to flatten the risk curve just like other derivatives. If a pension fund maybe wants to buy up a bunch of land and a bank offers a swap both parties can hedge themselves in the event of a move against them. Just always view th dervitavies as a big insurance program minus the Sharks of the world who bet naked meaning no underlying position to hedge against. Of course it's a whole lot more complicated ,just trying to use as few as words as possible.
Doubt it's to big of a deal one way or another other then if your local credit union starts playing around and gets caught in a death spiral and you loose your deposits. But with everything else going on right now if you haven't looked into your local banks,not the big boys,and you have large deposits I suggest tripping the alarm bell in your head especially Canadian western bank but that's getting off topic
Doubt it's to big of a deal one way or another other then if your local credit union starts playing around and gets caught in a death spiral and you loose your deposits. But with everything else going on right now if you haven't looked into your local banks,not the big boys,and you have large deposits I suggest tripping the alarm bell in your head especially Canadian western bank but that's getting off topic
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