Accreting Principal Swap

What Does Accreting Principal Swap Mean?
A swap whereby the notional value is increasing over time.

Investopedia explains Accreting Principal Swap
This type of swap is used mainly by companies willing to pay a fixed rate in return for an increasing notional as a result of increasing working capital requirements.

Filed Under: Derivatives, Forex, Futures

Related Terms

Interest Rate Swap
Notional Principal Amount
Notional Value
Swap
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