DEFINITION of 'Amortizing Swap'
An exchange of cash flows, one of which pays a fixed rate of interest and one of which pays a floating rate of interest, and both of which are based on a notional principal amount that decreases. In an amortizing swap, the notional principal decreases periodically because it is tied to an underlying financial instrument with a declining (amortizing) principal balance, such as a mortgage.
BREAKING DOWN 'Amortizing Swap'
The notional principal in an amortizing swap may decline at the same rate as the underlying or at a different rate which is based on the market interest rate of a benchmark like mortgage interest rates or the London Interbank Offered Rate. The opposite of an amortizing swap is an accreting principal swap  its notional principal increases over the life of the swap. In most swaps, the amount of notional principal remains the same over the life of the swap.

Index Amortizing Swap  IAS
An interest rate swap where the notional principal amount declines ... 
Notional Principal Amount
In an interest rate swap, the predetermined dollar amounts on ... 
Accreting Principal Swap
A derivative where counterparties exchange financial instrument ... 
Airbag Swap
An interest rate swap whose notional value adjusts according ... 
Currency Swap
A swap that involves the exchange of principal and interest in ... 
Delayed Rate Setting Swap
An exchange of cash flows, one of which is based on a fixed interest ...

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Trading
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Plain interest rate swaps that enable the parties involved to exchange fixed and floating cash flows. 
Trading
Different Types of Swaps
Investopedia explores the most common types of swap contracts. 
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Personal Finance
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Personal Finance
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Investing
Explaining Amortization In The Balance Sheet
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Trading
Understanding Notional Value
This term is commonly used in the options, futures and currency markets because a very small amount of invested money can control a large position. 
Investing
The Advantages Of Bond Swapping
This technique can add diversity to your portfolio and lower your taxes. Find out how. 
Investing
Currency Swap Basics
A currency swap involves two parties exchanging a notional principal and interest to gain exposure to a desired currency.

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