Unwind cost

An example would be that a protection buyer holding a fixed-rate risky bond and wishes to hedge the credit risk of this position via a credit default swap. However, by means of an asset swap the protection seller (e.g., a bank) will agree to pay the protection buyer LIBOR +/-spread in return for the cash flows of the risky bond. In this way the protection buyer (investor) may be able to explicitly finance the credit default swap premium from the asset swap spread income if there is a negative basis between them. If the asset swap was terminated, it is common for the buyer of the asset swap package to take the unwind cost of the interest rate swap. 

If the investor is exposed to the unwind cost of the interest rate swap in a standard asset swap package in the event of default. This risk may canse investors to require a higher asset swap spread level to compensate them for this risk. 

The use of the vinyl polymer in fluid form offers distinct advantages to the manufacturer of vinyl products. The most important obvious advantage is the relatively lower cost of liquid processing equipment and accessories as compared to those required for processing of solid or powder thermoplastics. For example, a spread coating line, for example, knife or roll coater, even with appropriate unwind and takeup accessories, is less expensive than a banbury-mixer-mill calender configuration. 

It is interesting here to compare the three techniques which are used in packaging for cases and cartons closing in large plants, as far as the available speeds, strength, costs, ease of application, ease of opening are concerned. In the past, cases were closed and sealed with staplers. This was a fairly slow and manual application, and it is less and less used, and only for small jobs, small production output. For the medium speed production lines upto 5 cases per minute, pressure sensitive tapes, applied by automatic unwinders, are suitable and used. 

On-line coating has the advantage of a considerably reduced total machine size compared vdth off-line coating, because a winder and an unwind station as well as a re-reeler can be omitted. This reduced size has a direct impact on investment and personnel costs. Paper losses due to the additional winding and unwinding process in an off-line process are also avoided. 

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