Amortising swap: Difference between revisions
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''Risk management - interest rate risk''. | |||
An amortising swap is a type of interest rate swap. | |||
Amortising swaps calculate interest on a reducing notional principal amount over the life of the swap, in order to hedge underlying exposures whose principal amount is also reducing. | Amortising swaps calculate interest on a reducing notional principal amount over the life of the swap, in order to hedge underlying exposures whose principal amount is also reducing. | ||
The are used - for example - to hedge a loan being repaid by instalments. | |||
== See also == | == See also == | ||
* [[Accreting swap]] | * [[Accreting swap]] | ||
* [[Amortisation]] | * [[Amortisation]] | ||
* [[Interest rate risk]] | |||
* [[Interest rate swap]] | * [[Interest rate swap]] | ||
* [[Risk management]] | |||
* [[Swap]] | * [[Swap]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Latest revision as of 15:54, 11 December 2019
Risk management - interest rate risk.
An amortising swap is a type of interest rate swap.
Amortising swaps calculate interest on a reducing notional principal amount over the life of the swap, in order to hedge underlying exposures whose principal amount is also reducing.
The are used - for example - to hedge a loan being repaid by instalments.
