FIXED TO FLOATING INTEREST RATE SWAP - SLIDE 1

Floating to Fixed Interest Rate Swap Art

Just as a Floating to Fixed Interest Rate Swap eliminates a customer's risk to floating rates, a Fixed to Floating Interest Rate Swap allows customers to take on floating rate exposure. A customer with fixed rate debt may want exposure to floating rates in order to achieve immediate interest savings or a better asset and liability match.

BENEFITS

Immediate Savings
In a normal interest rate environment (one in which long-term rates are higher than short-term rates) the Fixed to Floating Interest Rate Swap creates immediate interest savings by converting their net interest expense from a long-term fixed rate basis to a cheaper short-term floating rate basis, allowing customers to realize these savings when the swap's floating rate is lower than the swap's fixed rate.

Maintain Long Term Capital Funding
Customers can use Fixed to Floating Interest Rate Swaps to customize their fixed versus floating interest expense profile without having to refinance their existing debt.