Rollercoaster Swap

Dictionary Says

Definition of 'Rollercoaster Swap'

A seasonal swap providing flexibility of payments at predetermined periods to best meet the counterparty's cyclical financing needs or other requirements.
Investopedia Says

Investopedia explains 'Rollercoaster Swap'

This swap has fluctuating payments so that the counterparty can match cash flows to transfers, periodic financing obligations or seasonal factors.

For example, an international company that sells lawn mowers might have a keen interest in a rollercoaster swap because it can match swap payments with the seasonal demand for lawn mowers.
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'Rollercoaster Swap'

  • How do I use a rollercoaster swap?

    http://www.investopedia.com/ask/answers/08/rollercoaster-swap.asp
    A rollercoaster swap is the name for a swap (the exchange of one security for another)
    with a notional principal that differs during various payment. ...
  • Stocks Frequently Asked Questions | Investopedia

    http://www.investopedia.com/ask/stocks
    ... View Answer; How do I use a rollercoaster swap? View Answer; Can a company declare
    a dividend that exceeds its earnings per share? View Answer; ...
  • Stocks Frequently Asked Questions | Investopedia

    http://www.investopedia.com/ask/stocks/
    ... View Answer; How do I use a rollercoaster swap? View Answer; Can a company declare
    a dividend that exceeds its earnings per share? View Answer; ...

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