BROWSE

Hara-Kiri Swap

What is 'Hara-Kiri Swap'

An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its name from Japanese banks' and securities houses' 1980s strategy of offerings very low rates in order to obtain business. In Japan, hara-kiri is a form of slow ritual suicide; the swaps were dubbed hara-kiri because they turned out to be a form of financial suicide for the institutions that offered them.

Explaining 'Hara-Kiri Swap'

Although hara-kiri swaps provide no intrinsic benefits to the parties that offer them, there are a variety of extrinsic benefits to consider. For example, the practice often involves USD/JPY cross-currency swaps, which have typically been attached to new issues with the aim of obtaining a leading underwriting position.


Further Reading


three, having been established in 1969, although on a base of 100 on 31 July 1964. The index is an arithmetic and weighted in-dex of 33 stocks, which together …
link.springer.com [PDF]
… 2. Japan--Foreign economic relations--Canada … toward greater capital-market involvement are handicapped both by Japanese Ministry of Finance regulations precluding … activities in the Tokyo market, particularly toward equity sales, private placements, and swap arrangements …

Foreign Firms in Japan's Securitites Industry in the 1980s and Post-Bubble EconomyForeign Firms in Japan's Securitites Industry in the 1980s and Post-Bubble Economy
link.springer.com [PDF]
… 2. Japan--Foreign economic relations--Canada … toward greater capital-market involvement are handicapped both by Japanese Ministry of Finance regulations precluding … activities in the Tokyo market, particularly toward equity sales, private placements, and swap arrangements …

Governance in a low-trust environment: The difficulties of fiscal adjustment in HungaryGovernance in a low-trust environment: The difficulties of fiscal adjustment in Hungary
www.tandfonline.com [PDF]
… 2. Japan--Foreign economic relations--Canada … toward greater capital-market involvement are handicapped both by Japanese Ministry of Finance regulations precluding … activities in the Tokyo market, particularly toward equity sales, private placements, and swap arrangements …

Tax-Driven Regulatory Drag: European Financial Centers in the 1990sTax-Driven Regulatory Drag: European Financial Centers in the 1990s
books.google.com [PDF]
… 2. Japan--Foreign economic relations--Canada … toward greater capital-market involvement are handicapped both by Japanese Ministry of Finance regulations precluding … activities in the Tokyo market, particularly toward equity sales, private placements, and swap arrangements …


Leave a Reply

Your email address will not be published. Required fields are marked *