Borrower
Subtype of DirectionThe swap position amounts to borrowing the target currency for the time period from the start of the swap until its final maturity.
More specifically and assuming that both initial and final exchanges of notional apply, a spot exchange takes place at swap's inception, whereby the swap holder delivers (lends) the source currency and receives (borrows) the target.
At swap's maturity the notional amounts are returned to their original owners, whereby the swap holder receives back the source currency and returns the target.
In the times between, the swap holder must pay the stipulated target coupon and receive the source coupon.