Plain vanilla

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Revision as of 13:29, 21 August 2013 by imported>Doug Williamson (Spacing and italics added 21/8/13)
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A description meaning that there are no additional non-standard features in a financial contract.

For example, a plain vanilla interest rate swap is a standardised agreement to exchange fixed for floating interest flows, calculated on a fixed notional principal amount over the life of the swap.

The term derives from ice cream, where 'plain vanilla' ice cream was historically the commonest and cheapest variety.

Also known as Vanilla.


See also