Swap (finance): Difference between revisions
WikiSysopIG (talk | contribs) Created page with "'''Swap''' is a derivative contract in which two parties agree to exchange specified cash flows according to predetermined terms over a specified period. The cash flows are generally calculated by reference to an underlying variable such as an interest rate, currency exchange rate, commodity price, or other financial reference. Swaps are commonly used for hedging, risk management, financing, and..." |
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\text{Pay-Fixed Swap} | \text{Pay-Fixed Swap} | ||
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The floating payment received under the swap can partially offset the floating interest payment on the loan. | The floating payment received under the swap can partially offset the floating interest payment on the loan. | ||