interest rate swaps
Interest rate swaps are financial agreements where two parties exchange fixed and floating interest rate payments, based on a notional principal amount, for a specified period of time. These swaps allow parties to mitigate or manage their exposure to interest rate fluctuations and obtain more favorable borrowing or investment terms.
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Related Concepts (1)
Similar Concepts
- basis swaps
- credit default swaps
- cross currency swaps
- currency hedging
- exchange rate volatility
- floating-for-fixed swaps
- foreign exchange swaps
- interest rate arbitrage
- interest rate cuts
- interest rate differentials
- interest rate fluctuations
- interest rate policies
- interest rate risk
- interest rate risk management
- interest rates