An entity that makes a payment to another. While the term payer generally refers to someone who pays a bill for products or services received, in the financial context it usually refers to the payer of an interest or dividend payment. In an interest rate swap, payer refers to the party that wants to pay a fixed interest rate and receive a floating rate of interest.


In the case of fixed income instruments, the issuer is the payer of periodic coupon or interest payments to the issuer. Likewise, a dividend-paying company is the payer of such dividends to investors.

  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Interest Rate Swap

    An agreement between two parties (known as counterparties) where ...
  4. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  5. Payee

    The party in an exchange who receives payment. A payee is paid ...
  6. Put-Call Parity

    A principle that defines the relationship between the price of ...
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