Interest Rate Swap
Definition
A swap in which the two counterparties agree to exchange interest rate flows. Typically, one party agrees to pay a fixed rate on a specified series of payment dates and the other party pays a floating rate that may be based on LIBOR (London Interbank Offered Rate) on those payment dates. The interest rates are paid on a specified principal amount called the notional principal.
Related Terms Other terms related to 'Interest Rate Swap' starting with the letter 'I' In Sight, Intracommodity Spread, Introducing Broker or IB, Indirect Bucketing, In The Money Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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