 A typical trade involves the corporate client paying Fixed – Leverage*Index Performance and receiving Libor + Spread to service their loan.More recent trades entail the client paying a fixed rate below the fair interest rate swap and receiving an index designed to replicate the Libor (e.g.MMI by Deutsche Bank) – such a saving for the client (interest rate swap – fixed rate) is due to the lower forwards implied by the index (by construction) and the client bearing any potential basis risk (difference between index and Libor).