Amortising swap

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Revision as of 20:26, 27 July 2013 by imported>Doug Williamson (Spacing & classification.)
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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.

See also