see also Forward Rate Agreements; Index-Amortizing Swaps; Accreting Swaps) An exchange of cash flows based upon different interest rate indices denominated in the same currency on a pre-set notional amount with a pre-determined schedule of payments and calculations. Usually, one counterparty will received fixed flows in exchange for making floating payments.

An agreement to exchange a floating interest rate for a fixed one (or vice versa) or from one type of floating rate to another over an agreed period of time, in respect of an agreed principal amount.

a contractual agreement between two parties to exchange fixed- and floating-rate interest payments based on a notional value in a single currency. Mining Terms

An agreement between two parties to exchange interest payments during a period of time in order to protect a party from interest rate fluctuations. The amount of interest payments that is exchanged is based on a predetermined principal amount (called the notional principal amount). The actual amount exchanged by the parties is an agreed upon periodic interest rate multiplied by the notional principal amount. Typically, one party pays the other a fixed interest payment over the life of the agreement while the other party makes payments that float with an index, such as Treasury bills, the London Interbank Offered Rate (LIBOR), federal funds rate, or the prime rate.

An agreement to exchange interest payments for a specific period of time on a given principal amount. The most common interest rate swap is a fixed-for-floating coupon swap, with the floating rate coupon indexed to LIBOR. The notional principal is typically not exchanged in a swap.

An arrangement to swap a fixed loan rate for a floating loan rate, or vice versa.

An exchange where on party is obliged to pay a fixed interest rate to the other party in return for a floating interest rate.

a combined series of forward rate agreements calling for exchange of interest payments on a number of specified future dates

a contract between two counterparties in which interest payments are made based on a notional principal amount, which itself is never paid or received

a contract between two counterparties to exchange fixed-interest payments for floating-interest payments

a contract between two or more parties to pay each other interest streams calculated on different bases, on a notional principal , for an agreed term

a contractual agreement between two counter parties to exchange a series of fixed rate interest payments for a series of floating rate interest payments at predetermined intervals for a stated period of time (the swap tenor)

a contractual agreement between two Counterparties to exchange cash flows on particular dates in the future

a contractual agreement between two parties under which each agrees to make periodic payments to the other based upon a notional amount of principal for an agreed upon period of time

a contractual agreement entered into between two counterparties under which each agrees to make periodic payment to the other for an agreed period of time based upon a notional amount of principal

a counter-party agreement that involves exchanging interest obligations based on a notional principal amount over a specific period of time

a financial contract between two parties exchanging or swapping a stream of interest payments for a notional principal amount on multiple occasions during a specified period

an agreement between two parties (bank and borrower) to

an agreement between two parties to exchange interest payments based upon a specified notional principal amount for a specified term

an agreement between two parties to exchange interest rate payments on a fixed (notional) amount of debt

an agreement between two parties under which the interest rate obligations in the form of a fixed or variable interest rate are swapped for a certain period, on the basis of an agreed principal

an agreement between two parties who exchange

an agreement to exchange a series of fixed interest rate cash flows for a series of floating interest rate cash flows (which can be tied to a specific index rate)

an arrangement whereby counterparties enter into an agreement to exchange periodic interest payments based on a specified notional principal amount

an exchange of cashflows for a prescribed period on prescribed dates

a popular derivative transaction that consists of an exchange of coupons, typically a fixed rate for a floating rate

a stand-alone financial instrument that is mostly used to fix the interest rate on a loan or indeed an investment

a way of achieving a fixed rate borrowing

(go to top) A bilateral derivative contract involving the exchange of fixed-rate payments for floating rate payments typically linked to the LIBOR interest rate index. Typically used to hedge interest rate risk.

A financial instrument that enables the changing of a series of variable interest payments to fixed interest payments (or vice versa).

An exchange between two parties of interest rate exposures from floating to fixed or vice versa.

A financial instrument where two parties agree to exchange an interest rate obligation for a pre-determined amount of time.

Agreement under which two parties agree to exchange one type of interest rate cash flows for another. One party typically pays a fixed interest amount, but receives variable payments computed using a published index.

Agreement under which two counterparties agree to exchange one type of interest rate cash flow for another type of cash flow on specified dates in the future. In a typical arrangement, one party periodically will pay a fixed amount of interest, in exchange for which that party will receive variable payments computed using a published index. See "Hedge."

A transaction between two parties in which each agrees to exchange payments tied to different interest rates or indices for a specified period of time, generally based on a notional principal amount.

An interest rate swap is the exchange of interest payments between two parties. For example, this allows variable interest to be exchanged for fixed interest, or vice versa.

a swap between two parties usually converting between fixed and variable rate interest payments on an agreed upon date,time and principal amount

A transaction in which two counter-parties exchange interest payment streams of differing character based on an underlying notional principle amount. The three main types are coupon swaps (fixed rate to floating rate in the same currency), basis swaps (one floating rate index to another floating rate index in the same currency) and cross-currency interest rate swaps (fixed rate in one currency to floating rate in another).

The exchange between two parties of interest payments associated with a notional principal amount.

A binding agreement between counterparties to exchange periodic interest payments on a predetermined notional principal amount. For example, one party will pay fixed and receive variable interest rate on a USD 100 million notional principal amount.

An exchange of financial instruments to give each party their preferred position

Interest rate swaps are undertaken to reduce a borrower's exposure to adverse increases in interest rates. A swap is a contract that lets a borrower exchange a floating rate for a fixed interest rate. The contract typically is with a financial institution such as a bank. By engaging in swaps, NAMB converts the floating interest rate on its borrowings into an interest rate that is fixed for a three, five or seven year term to match the adjustment periods on the church loans.

Transaction in which two parties agree to pay each other's debt payments or to receive payments from each other's securities over time. Cash is exchanged in designated amounts at prescribed intervals and results in more favorable borrowing terms for both parties.

A derivative in which two parties agree to exchange periodic interest payments. These payments are calculated on a "notional amount," and no exchange of principal occurs. Interest rate swaps are commonly used to manage the asset or liability sensitivity of a balance sheet by converting fixed rate assets or liabilities to floating rates, or vice versa.

A binding agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one party will pay fixed and receive variable.

an agreement between two parties to swap their interest payments. It usually involves one party exchanging a stream of fixed cash flows for a stream of floating cash flows

A swap under which both cash flow streams are in the same currency and are defined as cash flow streams that might be associated with some fixed income obligations.

A swap arrangement where interest payments on a certain amount of principal are exchanged between two parties on a specific date. One of the payment streams involved is usually based on a fixed interest rate, while the other is based on a floating rate. Sometimes referred to as interest rate exchange agreement.

A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies.

It is a contract whereby one party typically agrees to exchange a floating rate for a fixed coupon rate. There are many variations on this theme. Some of these other swaps can be cross border, fixed-for-fixed, or floating-for-floating. The common denominator to these transactions is the swapping of cash flows and not principal amounts.

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.

An agreement between two parties to switch payments of differing interest rates for a certain period.

In the field of derivatives, a popular form of swap is the interest rate swap, in which one party exchanges a stream of interest for another party's stream. These were originally created to allow multi-national companies to evade exchange controls. Interest rate swaps are normally 'fixed against floating', but can also be 'floating against floating' rate.