Swap Market Participants
Since swaps are privately negotiated products, there is no restriction on who can use the market. However, parties with low credit quality have difficulty entering the market. This is due to fact that they cannot be matched with counterparties who are willing to take on their risks. In the U.S. many parties require their counterparties to have minimum assets of $10 million. This requirement has become a standardized representation of “eligible swap participants".
The following list includes a sample of swaps market participants:
Multinational companies
Shell, IBM, Honda, Unilever, Procter & Gamble, Pepsi Co.
Banks
Banks participate in the swap market either as an intermediary for two or more parties or as counterparty for their own financial management.
Sovereign and public sector institutions
Japan, Replubic of Italy, Electricity de France, Sallie Mae (U.S. Student Loan Marketing Association).
Supernationals
World Bank, European Investment Bank, Asian Development Bank.
Money Managers
Insurance companies, Pension funds.
Since swaps are privately negotiated products, there is no restriction on who can use the market. However, parties with low credit quality have difficulty entering the market. This is due to fact that they cannot be matched with counterparties who are willing to take on their risks. In the U.S. many parties require their counterparties to have minimum assets of $10 million. This requirement has become a standardized representation of “eligible swap participants".
The following list includes a sample of swaps market participants:
Multinational companies
Shell, IBM, Honda, Unilever, Procter & Gamble, Pepsi Co.
Banks
Banks participate in the swap market either as an intermediary for two or more parties or as counterparty for their own financial management.
Sovereign and public sector institutions
Japan, Replubic of Italy, Electricity de France, Sallie Mae (U.S. Student Loan Marketing Association).
Supernationals
World Bank, European Investment Bank, Asian Development Bank.
Money Managers
Insurance companies, Pension funds.