Branch Banking & Trust is about to enter into a USD20 million (notional), 10-year callable interest-rate swap with a corporate client. Rich Miller, v.p., risk management in Winston-Salem, N.C., said the bank reserves the right to call after seven years. He declined to name the client, except to say that it is a corporate that has issued a bond. The rates have not been determined, but Miller estimated that the client will pay a fixed rate of around 5.45% and will receive a U.S. dollar LIBOR-based rate. The client is looking to fix its liability when interest rates are low and their long-term future direction is uncertain, he added.
