This post will address a question that we have been receiving from many contacts, clients and colleagues in recent days (particularly in light of the rate cut announced yesterday afternoon by the Federal Reserve Board).

  • What will happen to an interest rate swap in a zero or negative interest rate environment?

We first addressed this question in a May 2015 post entitled, Dealing with “Deemed Zero Rates” in Loan Agreements and Related Interest Rate Swap Documentation.

Continue Reading Interest Rate Swaps in “Zero” and Negative Interest Rate Environments