(Bloomberg) -- Piera Levo and her husband, who run a
15-employee plumbing supply company in northeastern Italy, bought
``insurance'' against interest rate increases from UniCredit SpA
in 2000.
Six years later, they paid 85,000 euros ($117,000) to
extricate themselves from a derivative known as an interest-rate
swap that is normally sold to large companies and fund managers.
Derivatives are contracts whose value is based on that of another
security, index or commodity, or linked to events such as changes
in interest rates.
Read more at Bloomberg Bonds News
15-employee plumbing supply company in northeastern Italy, bought
``insurance'' against interest rate increases from UniCredit SpA
in 2000.
Six years later, they paid 85,000 euros ($117,000) to
extricate themselves from a derivative known as an interest-rate
swap that is normally sold to large companies and fund managers.
Derivatives are contracts whose value is based on that of another
security, index or commodity, or linked to events such as changes
in interest rates.
Read more at Bloomberg Bonds News
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