29 August 2011 Internal T.I. 2009-0336671I7 - Derivative -- summary under Investment Contract

Interest rate swap transactions between a controlled foreign affiliate of the taxpayer ("BCo") and a foreign financial institution specializing in derivative contracts ("FCo") under which there was a fixed coupon swap of FCo computed and paid every six months at a fixed notional interest rate on a US-dollar notional principal and a second arm payable by BCo on (presumably the same) US dollar notional principal at the prevailing US six-month LIBOR rate but payable every X years, did not represent loans as "the legal form of the transactions must be respected."