[Scorpion Man]

Ummmm....what do you mean by saying this?

"A fixed-to-floating swap is risk-reducing 95% of the time. "

By definition, a fixed rate liability has no "risk" ... its fixed. By floating you are taking on the risk of interest rate volatility. Maybe you meant something different...

Having been on the other side as a potential buyer of these securities I don't agree that people always understand the costs involved. I think many people also think they are getting "something for nothing". THat is basically the way certain derivatives are often pitched...for us it was often the bank trying to get us to pay them for using their balance sheet when we didnt need to.