Interest Rate Swaps

Definition

An agreement to exchange interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. The principal amount is notional as at the end of the tenure only cash flows related with the interest payments (whether payment or reciept) are exchanged.

Forex Word of the day

ISDA (International Securities Dealers Association
Organization which foreign currency exchange banks have formed to regulate inter-bank markets and exchanges.
(+)XML feed