The client might then buy a rates of interest swap from the bank where it gets a fixed rate. The bank could turn around and sell its set rate cash flow 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 client efficiently gets a fixed rate. Leaving any deal costs aside, a back-to-back swap may appear like a respectable solution due to the fact that…