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Roll-Over Lock

A swap that mainly hedges roll risk where the roll-lock payer pays the average cost of the roll measured at...

Roll-Lock Swap

A swap that mainly hedges roll risk where the roll-lock payer pays the average cost of the roll measured at...

Regulatory Arbitrage

Efforts or actions which are taken by companies to avoid regulation. Financial institutions typically face very different regulatory environments, and...

Roll Date

The date on which the periodic payment terms and conditions of a swap agreement are established. In other words, the...

Rho

The rate of change in price of a derivative with respect to a change in the risk-free rate. This “Greek”...

Ratchet Floor

An interest rate derivative, or more specifically an interest rate floor whose strike is reset to the current interest rate...

Ratchet Cap

A nonstandard interest rate cap in which the cap rate for each caplet is equal to the sum of the...

Range Accumulation Option

An option that accrues in value (payoff) for each day that the reference index rate remains within a specified range...

Ratchet Inverse Floater

Another name for the snowball; a hybrid derivative instrument that allows investors harboring a strong feeling that rates will fall...

Strike Reset Put Option

A strike reset option (and a European put option) which allows the holder to shout (and hence it is a...