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Par Asset Swap

An asset swap in which one counterparty delivers a risky asset (bond, floater, etc) to the other in return for par value. In other words, one...

MM Derivative

It stands for money-market derivative: a short-term interest rate derivative that is used in money market trading and hedging. Examples of money market derivatives...

Money Market Derivative

A short-term interest rate derivative that is used in money market trading and hedging. Examples of money market derivatives include short-term interest rate futures and forward rate agreements (FRAs), short-dated...

Multiple Exercise Option

An option that allows the holder to repeatedly exercise the right to receive greater or smaller amounts of the underlying. In...

ICE Swap Rate

It stands for intercontinental exchange rate. By definition, it is the mid-price for interest rate swaps (the fixed leg) and...

ICE Swap

An abbreviation for inverted curve enhancement swap; an interest rate swap that places a minimum level (floor) under the floating rate in consideration...

Interest Rate Swap

A derivative that involves the exchange of a fixed rate of interest on a certain notional amount for a floating rate...

IRS

It stands for interst rate swap; an exchange of a fixed rate of interest on a certain notional amount for a floating rate...

Option Alpha

This second-order greek expresses the quality of gamma in terms of the time decay (rent). Therefore, it indicates the quality of the earnings from...

Real Rate Swap

A CPI-linked swap where counterparties exchange a floating nominal rate like LIBOR on an annual basis against an inflation-indexed bond...