What Are Interest Rate Swaps?

Even as a teacher, you learn new things every day. Yesterday, a student asked me about OTC Derivatives Clearing and I had no idea what it was. So I researched and found the answer; it’s pretty interesting stuff so I thought I’d share it.

There are many different types of investments that can be used to increase your profits. However, there are certain investment opportunities that are more specified and have a more distinct purpose.An Interest Rate Swap is a form of OTC Clearing and is done through the use of a clearing house and are the exchange of cash flows between two parties. The swap rate that is exchanged is either fixed or floating. Why are interest rate swaps becoming so popular?

Basics of Interest Rate Swaps

It is important to understand that the principal amount of the payment is never exchanged between the two parties. The only exchange is in the interest rate, which is determined by the specified amount of the principal. The most common exchange of interest rate swaps involves the swap of a fixed rate for a floating rate. This means that instead of paying a fixed amount the rate will fluctuate based on the LIBOR.

Why Opt For Floating Over Fixed?

Exchanging a fixed interest rate for a floating interest rate may seem risky, but it is an investment opportunity that many firms, banks and corporations find appealing. Many parties that look to the Swap Rate find that predicting the LIBOR can be difficult, but it can also be a lucrative opportunity if you guess wisely. Trying to predict the LIBOR is contingent on many factors, but if you exchange a fixed rate for a floating rate when the LIBOR is most favourable you will have the ability to amass extensive savings and earn profits from the other party involved in the interest rate swap.

What About Fixed?

The advantage of swapping a floating rate for a fixed rate is all about risk management. If you want the ability to lessen the amount of risk that you face, it can be beneficial to swap interest rates with another party that has a fixed rate. Knowing your fixed rate gives many firms, companies and banks stability knowing that the rate will be consistent and will not fluctuate.


This type of investment opportunity is more specialized and not really ideal for individuals. It is often used by firms, companies and banks as a means of risk management or for calculated risk growth. The best part about these swaps is that they are overseen by a Clearing House and are completely guided by restrictions designed to protect both parties involved in the swap.

Common Injuries in Marathon Runners

Ideally every stride a runner takes would be free of painful twitches, aching knees, stiff hamstrings and lingering soreness. But runners know that we don’t live in an ideal world and running disturbances both major and minor are part of the sport that you adore.

Injuries in marathon runners range from severe injuries such as stress fractures to moderate injuries such as aches in the knees that come and go. How you respond to ailments and aches will determine how quickly you are in great shape for your best performance and for your body’s safety.

There are common injuries that plague runners and if you don’t give them the medical attention that they need then they can take a turn for the worse and force you to take time off. Here are 3 of most common injuries, according to a Physiotherapist, so that you are aware what to keep an eye out for while accessing your running performance.

1. Runners Knee

About 40% of runner’s injuries are knee-related making it a very common injury. This happens when the cartilage around the kneecap is worn down and becomes irritated. You may feel pain when you are going up and down stairs, squatting or sitting.

2. Achilles Tendinitis

This is when your Achilles tendon, the tendon that connects the two calf muscles to the back of the heel, is under too much stress and tightens. This can be caused by adding too much distance too soon to your training or inadequate calf stretching. The pain and stiffness is generally worse in the morning and during activity.

3. Plantar Fasciitis

It’s not surprising that more than 15% of runner’s injuries are to the foot. With every stride out feet absorb a force that can double or triple our body weight.  The plantar fascia is the thick tissue band on the bottom of the foot that reaches from the heels to the toes. When that band tears or becomes inflamed it is a real struggle for runners. It’s more common in individuals with high foot arches and tight calf muscles but also caused by increased distance.

A Chiropractor would recommend that you RICE (rest, ice, compression and elevation) but in addition to this, visiting a Chiropodist, a medical professional who specialises in the foot and lower extremities, can limit your recovery time so that you are running at your full potential as soon as possible. An Osteopath can also offer long-term treatment or prevention plans so that you can enjoy your passion 100% pain-free.