Capital market swap

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Revision as of 08:07, 22 June 2023 by imported>Doug Williamson (Add links.)
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A capital market swap is a longer-term derivative instrument. It is an agreement to exchange a series of cashflows at pre-determined future dates, usually settled for difference.

Examples of capital market swaps include interest rate swaps, basis swaps, and cross currency interest rate swaps.

Like other derivative instruments, capital market swaps can in theory be used for hedging, for arbitrage or for speculation.


See also