Brascan Corp., a Toronto-based holding firm with interests in commercial properties, financial services and power plants, has executed an interest rate swap to convert a recent USD200 million fixed-rate bond into a synthetic floating-rate liability. Brian Lawson, cfo, said the firm enters swaps in order to keep a balanced book. It does, however, keep a modest amount of floating rate exposure in order to take advantage of the shape of the curve, he explained.
Lawson declined to give details of the swap, or name which firm executed the transaction, but Credit Suisse First Boston and Salomon Smith Barney lead managed the seven-year bond issue.
