Worried about interest rate risks? Consider a swap agreement
Abstract: The continuing uncertainty of the credit market is prompting concern among many owners and investors about the risk of rising interest rates. Some have turned to interest rate swap agreements to mitigate their risk. The arrangements, which are especially appealing when fixed rate loans are unavailable, can pay off for both borrowers and lenders. This article shows how these agreements work and how title insurance can play a role in securing the obligations they entail. A sidebar explains how some swaps are custom-made to fit the parties’ financing needs.