Interest rate swap and Ringgit: Difference between pages

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(IRS). A longer-term interest rate derivative.
The main currency unit of Malaysia, divided into 100 sen.
An IRS is similar in its effect to a Forward Rate Agreement (FRA).
An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.  


But the IRS usually has multiple future interest calculation and settlement dates, and is used by a corporate to hedge or transform longer term interest rate exposures.
Its ISO currency code is MYR.


For example, an interest rate swap might be used to transform a longer term floating rate borrowing into a synthetic fixed rate borrowing.


(Whereas an FRA is for the shorter term and for a single settlement receipt or payment.)
==See also==
 
* [[ISO currency codes]]
Other forms of capital market swap have been developed for the exchange of many other different types of cash flows and are used widely to hedge or transform a wide variety of related underlying exposures.
* [[MASB]]
 
== See also ==
* [[Accreting swap]]
* [[Amortising swap]]
* [[Cross-currency interest rate swap]]
* [[Forward rate agreement]]
* [[Forward start swap]]
* [[Notional amount]]
* [[Swap]]
* [[Swap rate]]


[[Category:The_business_context]]

Latest revision as of 10:38, 11 April 2018

The main currency unit of Malaysia, divided into 100 sen.

Its ISO currency code is MYR.


See also