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No.........

[broken record] fixed rate swaps have been trending up for months [/broken record]

*cough* What?

Spot on.......

a) I know. Just providing the example. They key thing to keep in mind is that you don't raise money at 5% if you can get in through other mechanisms at a similar term for a lower cost. b) In the example you give: Funding cost for 5 year debt is 5 year swap (3.58%) plus issuance cost...

There are three year term deposits at 5% today. If you're paying 5% for your cash for three years, what would you need to lend it at. What does that mean for the probability of sub-5% fixed rates? :confused: Just sayin'

Have a look in today's newspapers as to what the banks are prepared to pay for three year term deposits. Ask yourself what it might saying about where they think rates will settle.

3 yr bank swap rates around 4% while 1 yr around 3.25%, so, yes.

I think I know what he's getting at, but correct me if you're coming from a different angle Chilliaa... As a guide, the swap rates (i.e.the fixed ones) are what bank treasury departments are charging each other for fixed money. The rate they charge is a function of where they see rates over...