interest rate swap

English

Noun

interest rate swap (plural interest rate swaps) (Abbreviated as: IRS)

  1. A contract to exchange the benefit of one interest rate with another. Often a fixed interest rate being exchanged for a variable rate so as to allow one party to remove an exposure to a variable rate for which they pay a premium on the fixed rate in order to compensate for this 'insurance'. The two rates can also be based on different currencies.
This article is issued from Wiktionary. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.