| swap's life | Beginning | Middle | End |
| currency swap | Low(*1) | Increase(*2) | High(*4) |
| interest rate swap | Low(*1) | Increase(*2) | Decline(*3) |
| equity swap | Highest (*5) |
(*1) Because each counterparty accepted the creditworthiness of the other in order to initiate the swap transaction. Additionally, net value of the swap for each party is set as zero.
(*2) By the middle of the swap's life, payments are coming due and credit risk increases.
(*3) As the remaining payments were made towards the end of the swap's life.
(*4) With the exchange of notional principal, the final payment keeps credit risk high through the end of the swap life, causing it to peak between the middle and the end of the swap's life.
(*5) At the end of the swap there are few potential payments left and the probability of either party defaulting on their commitment is relatively low.
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