What are the pros and cons of swap loans?

When it comes to swap loans, what are the key advantages that investors and borrowers alike can expect to reap? On the other hand, are there any significant drawbacks or potential risks that one should be aware of before embarking on such a financial arrangement? Could you elaborate on both the positive and negative aspects of swap loans, taking into account factors such as interest rate flexibility, hedging opportunities, liquidity constraints, and potential counterparty risks?