Swaps Born in U.K Boom Haunt Buyers After Rates Slide

Swaps Born in U.K Boom Haunt Buyers After Rates Slide

Simon Dawson/Bloomberg

A logo for Barclay's Plc's in London. Banks paired swaps contracts of 15 to 30 years with five-year commercial property loans, making the penalties for breaking the agreements “particularly virulent” because they mature long after the loans, said Rob Leach, a director at ratings company Standard & Poor’s.