Swap 4175: how a hedged loan became a €600m dispute

City of Linz v Bawag case underlines risks in municipal derivatives

arbitrage
Not always black and white: muni swap dispute is rumbling on

Swaps mis-selling cases have marched across Europe in recent years, with claims being filed from Norway and Germany to Portugal and Italy. Often the plaintiffs have been municipal derivatives users or public-sector enterprises, which allege they were bundled into risky, inappropriate trades. The legal arguments are playing out anew in Austria, where one of the biggest civil cases in the country's history currently hangs in the balance.

"There have been other disputes between banks and municipali

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