Swap Rate

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Dictionary Says

Definition of 'Swap Rate'

The rate of the fixed portion of a swap as determined by its particular market. This is the rate at which the swap will occur for one of the parties entering into the agreement.
Investopedia Says

Investopedia explains 'Swap Rate'

These rates are quoted by the market and will be almost identical to the rate used for the swaps, minus any premiums added.

For example: 1) The interest rate associated with the fixed portion of an interest rate swap.

2) The exchange rate associated with the fixed portion of a currency swap.
Search results for

'Swap Rate'

  • Introduction To Counterparty Risk

    http://www.investopedia.com/articles/optioninvestor/11/understanding-counterparty-risk.asp
    ... To keep the example simple, we assume the LIBOR/swap rate curve is flat at 4.0%. ...
    The swap is priced based on the future random interest rate. ...

  • What is an absolute rate?

    http://www.investopedia.com/ask/answers/08/absolute-rate.asp
    An absolute rate is easy to understand once you know the basics of an interest rate
    swap. ... An absolute rate is the fixed rate portion of an interest rate swap. ...

  • CFA Level 1 Study Guide - Derivatives - Interest Rate and Equity ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/interest-rate-equity-swaps.asp
    Learn the components of plain vanilla interest rate swaps and equity swaps. Contains
    sample calculations finding the payments for each swap. ...

  • How can I use an "airbag swap"?

    http://www.investopedia.com/ask/answers/08/airbag-swap.asp
    An airbag swap is an interest rate swap designed to provide a cushion against rising
    interest rates. The airbag swap originally was designed for. ...

  • How do companies benefit from interest rate and currency swaps?

    http://www.investopedia.com/ask/answers/06/benefitsofswaps.asp
    An interest rate swap involves the exchange of cash flows between two parties based
    on interest payments for a particular principal amount. However,. ...

  • An In-Depth Look At The Swap Market

    http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp
    ... While traditionally one would trade bonds to make such bets, by entering into either
    side of an interest rate swap agreement, you would gain immediate exposure ...

  • Currency Swap Basics

    http://www.investopedia.com/articles/forex/11/introduction-currency-swaps.asp
    ... which tools you need to manage the risk that comes with changing rates, check out
    Managing Interest Rate Risk.) Advantages of the Currency Swap Rather than ...

  • Managing Interest Rate Risk

    http://www.investopedia.com/articles/optioninvestor/08/manage-interest-rate-risk.asp
    ... More specifically, an interest rate swap looks a lot like a combination of FRAs
    and involves an agreement between counterparties to exchange sets of future ...

  • CFA Level 1 Study Guide - Derivatives - Swap Markets and Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/swap-markets-contracts.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

  • Starbucks Stock Swap: Happy Baristas Means Happy Investors ...

    http://financialedge.investopedia.com/financial-edge/0609/Starbucks-Stock-Swap-Happy-Baristas-Means-Happy-Investors.aspx
    ... swap. What does the employee stock swap mean to investors? As ... Taxed. Rate
    this Article: Your Rating: Overall Rating: Vote Now! Posted ...

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