The consumer might then purchase a rate of interest swap from the bank where it gets a fixed rate. The bank could turn around and sell its fixed rate capital stream to another investor for an adjustable rate. The two swaps (bank-to-borrower and bank-to-investor )cancel each other out, leaving the bank with an adjustable rate, even though the customer successfully gets a set rate. Leaving any deal costs aside, a back-to-back swap may appear like a respectable option since it effectively…