Study on the Forms of Interest Rate Swap Markets between China and the United States under the Background of Fed Rate Hikes

Abstract

The research on forms of interest rate swap markets between China and the United States under the background of fed rate hikes aims to determine the reason for using various types of interest rate swap markets used between the two countries. Various previous studies have been reviewed to provide a viewpoint on the gaps in the research. The methodology to be applied in the research project is an empirical method. Secondary sources will be used for data collection and analysis using SPSS and Excel software. Independent and dependent variables are to be used in analyzing the research. The research shows how China and U.S. apply various forms of interest rate swap markets as influenced by the fed rate hikes hence the reason for developing variables to show the relation between fed rate hikes and swap markets. Hypothesis testing is used to analyse the findings based on the variables developed for the research to offer the forms of interest swap markets and the relation with fed rate hikes. The empirical method is considered convenient since hypothesis testing can be used in analyzing the forms of interest rate swap markets between China and the USA using the findings of verified sources. The conclusions of the research project are to show that forms of IRS market between the USA and China include cross-currency, fixed-floating and onshore swaps from various previous studies conducted.