DECISION‐MAKING MODELS TO FACILITATE THE USE OF SWAPS IN GLOBAL CONTEXT

For many years interest‐rate and currency swaps have been used by multinational corporations' management as a hedge against unforeseen contingencies in the capital market. However, the current literature does not contain specific decision‐making criteria or models for use by company management to decide whether a swap should be preferred to alternative forms of obtaining debt in the capital market. This research presents models and criteria to be used by management in the decision‐making process to obtain a desirable swap transaction in a unified international capital market.