Who would use a FRA?
A. FRA’s can be used by investors who have a desire or need to alter their interest rate or cash flow profile to suit their particular needs. FRA’s are used by investors looking to protect themselves from, or take advantage of, future interest rate movements. Variable rate investors may use FRA’s to alter their interest gain by converting from being a variable rate interest receiver to a fixed rate interest receiver in a market where interest rates are expected to fall. Fixed Rate investors could use a FRA to convert from fixed interest payer to variable floating interest payer in market where interest rates are expected to rise.
Related Questions
- Rail Program Implementation and Schedule What programs will FRA use to fund the development of high-speed and intercity passenger rail?
- What is FRAs schedule for implementing these high-speed and intercity passenger rail grant programs?
- What specifications does FRA prescribe for the construction of track?
