Caisse Nationale De Credit Agricole, a French Banking Corporation v. Cbi Industries, Incorporated, a Delaware Corporation, Cross-Appellee

MANION, Circuit Judge.

Interest rate “swaps” are agreements to exchange fixed-rate and floating-rate interest obligations. Typically, each party agrees to make interest payments to the other calculated by reference to an agreed amount, the “notional amount” in swap parlance. One party pays interest on the notional amount at a fixed rate; the other at a floating rate. When the agreement expires, the obligations are netted and the party owing the greater amount, if any, pays the excess. Swap agreements are used to manage interest rate risk or to speculate on interest rate movements. 1 This case…