What is a 'FixedForFloating Swap'
A fixedforfloating swap is an advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate.
BREAKING DOWN 'FixedForFloating Swap'
To understand how each party would benefit from this type of arrangement, consider a situation where each party has a comparative advantage to take out a loan at a certain rate and currency. For example, Company A can take out a loan with a oneyear term in the U.S. for a fixed rate of 8% and a floating rate of Libor + 1% (which is comparatively cheaper, but they would prefer a fixed rate). On the other hand, Company B can obtain a loan on a oneyear term for a fixed rate of 6%, or a floating rate of Libor +3%, consequently, they'd prefer a floating rate.
Through an interest rate swap, each party can swap its interest rate with the other to obtain its preferred interest rate
Note that swap transactions are often facilitated by a swap dealer, who will act as the required counterparty for a fee.

Bond Market Association (BMA) Swap
A type of swap arrangement in which two parties agree to exchange ... 
Swap Rate
The rate of the fixed portion of a swap as determined by its ... 
Asset Swap
Similar in structure to a plain vanilla swap, the key difference ... 
Putable Swap
An exchange of cash flows in which one counterparty makes payments ... 
Inflation Swap
A derivative used to transfer inflation risk from one party to ... 
Callable Swap
An exchange of cash flows in which one counterparty makes payments ...

Investing
How Are Interest Rate Swaps Valued?
When trading in financial markets, higher returns are generally associated with higher risk. Hedge your risk with interest rate swaps. 
Investing
Interest Rate Swaps Explained
Plain interest rate swaps that enable the parties involved to exchange fixed and floating cash flows. 
Investing
Different Types of Swaps
Investopedia explores the most common types of swap contracts. 
Markets
What's an Interest Rate Swap?
An interest rate swap is an exchange of future interest receipts. Essentially, one stream of future interest payments is exchanged for another, based on a specified principal amount. 
Trading
An InDepth Look At The Swap Market
The swap market plays an important role in the global financial marketplace; find out what you need to know about it. 
Trading
An Introduction To Swaps
Learn how these derivatives work and how companies can benefit from them. 
Managing Wealth
How To Read Interest Rate Swap Quotes
Puzzled by interest rate swap quotes terminology? Investopedia explains how to read the interest rate swap quotes 
Trading
Hedging With Currency Swaps
The wrong currency movement can crush positive portfolio returns. Find out how to hedge against it. 
Trading
Managing Interest Rate Risk
Interest rate risk stems from the possibility that an interestbearing assetâ€™s value will change due to changing interest rates. 
Trading
Currency Swap Basics
Find out what makes currency swaps unique and slightly more complicated than other types of swaps.

What are interest rate swaps on the OTC market?
Learn about interest rate swaps and how they are traded over the counter, and understand the impact of DoddFrank on swaps ... Read Answer >> 
Can individual investors profit from interest rate swaps?
Find out how individual investors can speculate on interest rate movements through interest rate swaps by trading fixed rate ... Read Answer >> 
What is an absolute rate?
An absolute rate is easy to understand once you know the basics of an interest rate swap. An absolute rate is the fixed rate ... Read Answer >> 
Do interest rate swaps trade on the open market?
Learn how interest rate swaps are traded on the OTC and interbank markets, and how these swaps can be used to arbitrage different ... Read Answer >> 
How do companies benefit from interest rate and currency swaps?
An interest rate swap involves the exchange of cash flows between two parties based on interest payments for a particular ... Read Answer >> 
What would motivate an entity to enter into a swap agreement?
Learn why parties enter into swap agreements to hedge their risks, and understand how the different legs of a swap agreement ... Read Answer >>