Why do banks enter into interest rate swaps?

Related questions

1. What happens if a stock goes to 0?
2. Are interest rate swaps exchange traded?
3. How interest rate swap can be used for hedging?
4. What is the difference between a future and a swap?
5. How are interest swaps priced?
6. What happens when a stock drops below $1?
7. Are swaps OTC or exchange traded?
8. Why do banks use interest rate swaps?
9. How swaps are traded?
10. How do people get rich off penny stocks?

Tags

1. #while
2. #receiving
3. #instead
4. #financial
5. #companies
6. #useful
7. #fixed
8. #interest
9. #swaps
10. #payments
11. #company
12. #payment
13. #wants
14. #future
15. #derivative
16. #other
17. #limit
18. #variable
19. #exchange
20. #receive