Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.
The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance capital expenditure of U.S. subsidiary. The subsidiary is earning U.S. dollar revenues that are to be utilized to service the yen debt. A currency swap would let the Japanese MNC to ignore the foreign exchange risk of an appreciating yen; the swap could serve as a prepared means for disposing of dollars and receiving yen to service the debt.