Fixed-floating Swap (Oil)

pocari77 · June 10th, 2011, 10:25 am

Hi, apologies for my ignorance and this question might appear somewhat naive, but this is somethingthat bugged me and I really need to ask you (experts).1) Why should someone hedge its exposure with a fixed/floating swap in oil and not simply hedge via fwd curve ?2) How does the fixed/floating swap seller hedge its position effectively ?Thanks

BramJ · June 10th, 2011, 12:16 pm

1) How?2) By trading either futures positions or OTC swaps