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| ''Interest rate swaps''.
| | The exchange of goods, services or capital across international borders or territories. |
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| The fixed leg of an interest rate swap is a predetermined series of notional fixed interest payments, exchanged for a series of floating interest payments, determined over time by the reference rate. | |
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| In practice the interest rate swap is settled for difference, so these payments are notional.
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| The fixed leg is also sometimes known as the ''fixed rate leg''.
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| When interest rate swap prices are quoted, the two-way prices quoted are for the fixed leg rate payable or receivable by the market taker.
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| (The market taker takes the worse side of the two-way price.)
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| == See also == | | == See also == |
| * [[ICE Swap Rate]] | | * [[Free trade]] |
| * [[Interest rate swap]] | | * [[Protectionism]] |
| * [[Market taker]] | | * [[Trade]] |
| * [[Swap rate]] | | * [[Trade finance]] |
| * [[Two-way price]]
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| ===Other links===
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| [http://www.treasurers.org/node/9936 Treasury Essentials: interest rate swap, Will Spinney, March 2014]
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| [[Category:Manage_risks]]
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Revision as of 14:45, 8 February 2017
The exchange of goods, services or capital across international borders or territories.
See also
