 |
Definition of 'Rate Anticipation Swap'
A type of swap in which bonds are swapped according to their current duration and predicted interest rate movements.
|
 |
Investopedia explains 'Rate Anticipation Swap'
Investors will usually participate in these swaps to maximize profits from favorable interest rate movements and minimize losses from unfavorable movements.
For example, bonds with higher duration generally exhibit higher price fluctuations when an interest rate changes. If interest rates are expected to decline, investors would swap for bonds with a higher duration in order to maximize potential gains from the price movement.
|
Search results for 'Rate Anticipation Swap'
-
http://www.investopedia.com/articles/08/bonds/active-management-bond-portfolio.asp
... Interest Rate Anticipation Interest rate anticipation is one of the ... (Read more about
anticipation in Anticipation Vs ... Bond-Swap Strategies The key to a bond-swap ...
-
http://www.investopedia.com/articles/bonds/09/investors-bond-swapping.asp
... risk tolerance, since bond swapping in anticipation of interest rate changes is
speculative and the changes upon which you're basing your bond swap may not ...
-
http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/phillips-curve.asp
... 15.35 Effect of Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets
and Contracts; 15.37 Currency Swaps; 15.38 Interest Rate and Equity Swaps ...
-
http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/hedge-fund-classifications.asp
... FRAs; 15.30 Interest Rate Caps and Floors; 15.31 Minimum and Maximum Values for
Options; ... Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...
-
http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/investment-strategies.asp
... FRAs; 15.30 Interest Rate Caps and Floors; 15.31 Minimum and Maximum Values for
Options; ... Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...
|
|
