Word info

interest rate swap

Noun

Meaning

English Wikipedia has an article on:interest rate swapWikipedia
interest rate swap (plural interest rate swaps) (Abbreviated as: IRS)

(finance) A contract to exchange the benefit of one interest rate with another. Often a fixed interest rate is 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.

Source: en.wiktionary.org

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