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Circus Swap

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Dictionary Says

Definition of 'Circus Swap'

A swap with the features of both a currency swap and an interest rate swap.

Also known as "cross-currency swap" or "currency coupon swap".
Investopedia Says

Investopedia explains 'Circus Swap'

In circus swaps, loans in one currency with a fixed rate would be swapped for a floating rate loan in the other currency.

Related Definitions

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    Currency Swap

    A swap that involves the exchange of principal and interest in one currency for the same in another currency. It is considered to be a foreign exchange transaction and is not required by ...
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  • Interest Rate Swap

    An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount. Interest rate ...
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  • London Interbank Offered Rate - LIBOR

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    • Hara-Kiri Swap

      An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its name from Japanese banks' and securities houses' 1980s strategy of offerings ...
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