Amortising swap: Difference between revisions
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imported>Doug Williamson m (Spacing & classification.) |
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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. | ||
Used - for example - to hedge a loan being repaid by instalments. | Used - for example - to hedge a loan being repaid by instalments. | ||
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* [[Interest rate swap]] | * [[Interest rate swap]] | ||
* [[Swap]] | * [[Swap]] | ||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
Revision as of 20:26, 27 July 2013
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.
Used - for example - to hedge a loan being repaid by instalments.
