Swap Curve

What is a 'Swap Curve'

A swap curve is the name given to the swap's equivalent of a yield curve. The swap curve identifies the relationship between swap rates at varying maturities.

BREAKING DOWN 'Swap Curve'

Used in similar manner as a bond yield curve, the swap curve helps to identify different characteristics of the swap rate versus time.

RELATED TERMS
  1. Forward Swap

    A swap agreement created through the synthesis of two swaps differing ...
  2. Swap Rate

    The rate of the fixed portion of a swap as determined by its ...
  3. Swap Bank

    A financial institution that acts as an intermediary for interest ...
  4. Substitution Swap

    An exchange that is carried out by trading a fixed-income security ...
  5. Swap Dealer

    An individual who acts as the counterparty in a swap agreement ...
  6. Reverse Swap

    An exchange of cash flow streams that undoes the effects of an ...
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RELATED FAQS
  1. 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 >>
  2. When was the first swap agreement and why were swaps created?

    Learn about the history of swap agreements, the first swap agreement between IBM and the World Bank, and how swaps have evolved ... Read Answer >>
  3. How are swap agreements financed?

    Learn how swap agreements are now cleared by swap execution facilities and require the use of collateral margin to hold, ... Read Answer >>
  4. What are some risks a company takes when entering a currency swap?

    Read about the risks associated with performing a currency swap, including counterparty credit risk in the event that one ... Read Answer >>
  5. 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 Dodd-Frank on swaps ... Read Answer >>
  6. Can bond traders trade on interest rate swaps?

    Read about interest rate swaps and why these transactions are performed by institutional actors in the bond market, not individual ... Read Answer >>
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