How much does a Swaption cost?
The cost of a Swaption is know as the premium. The premium for a Swaption depends on the structure of the Swap you require and in particular the fixed interest rate of the Swap when compared to current market interest rates. For example, if current market rates are 6%, you would pay more for a Swaption at 7% than a Swaption at 8.5%. The premium on a Swaption also depends on the rollover frequency and how you make your premium payments. We will endeavour to structure the payments to suit your cash flows. Your St.George Financial Markets representative will be happy to provide an indication of costs when you discuss your requirements with them.
