The customer could then buy a rate of interest swap from the bank where it gets a fixed rate. The bank could reverse and offer its set rate capital stream to another financier 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, despite the fact that the customer successfully gets a set rate. Leaving any deal costs aside, a back-to-back swap might appear like…