About this document
Understanding Interest Rate Swaps by tnirav is a document available to read on EtoBox.
Interest rate swaps allow parties to exchange interest rate payment obligations, typically fixing a variable rate for a fixed rate or vice versa. In a plain vanilla interest rate swap, one party pays a fixed interest rate on a notional principal amount while the other party pays a floating rate, usually LIBOR. These swaps are commonly used to synthetically create fixed or floating rate loans or investments with better rates than could be obtained directly. For example, a fixed rate loan can be combined with
- Author
- tnirav
- Language
- EN