Swapping floating interest rate into fixed

Hello,

I need to find a good way to swap a margin loan with floating interest rate into a fixed rate loan – if possible 10 years fixed. I have been looking into doing this with futures but do not have much experience with possible pitfalls.

Do anyone have experiences/ideas that they are willing to share with me?


Kind regards,
Steffan

 

You can't really do it, unless you're willing to incur all sorts of transaction costs...

 

It would be preferable just to have one swap. However as long as I can estimate the total costs over 10 years it is not a deal-breaker if a number of transactions are required over the years.

 

Well, you need to ask your bank if they'd be willing to offer you something like a swap or whatevers. Otherwise, you will have to roll a futures position quarterly.