Amortising swap: Difference between revisions
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Used - for example - to hedge a loan being repaid by instalments. | Used - for example - to hedge a loan being repaid by instalments. | ||
== See also == | == See also == | ||
Revision as of 12:27, 22 June 2016
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.
