Besides the mark-up, are there any fees or other costs of doing swaps?
Under normal circumstances when a hedger enters a new swap, there are no charges or fees, the revenue is made in the dealer's mark-up.
The dealer will provide all documentation, confirmations, settlement notices, and mark-to-market statements at no cost.
However, the client may decide to have the swap agreements reviewed by counsel and/or accountants. Any such costs are born by the hedger.
During the life of a swap and at maturity of a swap, there is no annual, maintenance, or closure fees or charges. This should not be confused with the periodic settlement payments under a swap or any early termination/breakage of the swap.
The dealer will provide all documentation, confirmations, settlement notices, and mark-to-market statements at no cost.
However, the client may decide to have the swap agreements reviewed by counsel and/or accountants. Any such costs are born by the hedger.
During the life of a swap and at maturity of a swap, there is no annual, maintenance, or closure fees or charges. This should not be confused with the periodic settlement payments under a swap or any early termination/breakage of the swap.