You are a swap dealer and you have just paid the fixed rate


You are a swap dealer, and you have just paid the fixed rate (and received 3 month LIBOR) on a 5-year interest rate swap. Both the Eurodollar futures market and the Treasury market are very liquid today. Qualitatively (no numbers) what transaction(s) would you do to best hedge your interest rate risk on this trade? Why?

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Financial Management: You are a swap dealer and you have just paid the fixed rate
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