Interest rate derivative

Risk management - hedging - interest rate risk - derivative instruments.

(IRD).

An interest rate derivative instrument or contract is one designed to hedge interest rate risk.

The cash flows and value of the interest rate derivative relate to an underlying reference interest rate.

Examples include forward rate agreements, interest rate swaps, cross-currency interest rate swaps, interest rate options and swaptions.

See also

• Collateral
• Credit support annex
• Cross-currency interest rate swap
• Derivative instrument
• Embedded derivative
• Expiry date
• Fixing instrument
• Forward rate agreement
• Hedging
• Interest rate option
• Interest rate risk
• Interest rate swap
• ISDA Master Agreement
• Linear
• Margining
• Mark to market
• Maturity
• Non-linear
• Notional principal
• Option
• Risk management
• Swaption