Amortising swap: Difference between revisions

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A type of interest rate 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.
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.
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.


See also