Amortising swap

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.

See also

• Accreting swap
• Amortisation
• Interest rate risk
• Interest rate swap
• Risk management
• Swap