Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Prepaid Swap – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Friday, June 20, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Derivatives

  Derivatives   |   Terms
  • 2058
  • August 2, 2020
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Prepaid Swap

A swap agreement where payment is made upfront for specific quantities of an asset or commodity that would be delivered at multiple specified times in the future. The upfront payment is equal to the present value of the future asset/commodity deliveries.

The prepaid swap could also refer to an annuity-like swap whereby the present value of future payments on the fixed leg is paid today, whereas the floating leg payments are made as in a regular swap. In effect, this swap is quite analogous to a variable rate loan.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=78ecc7bubm]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Terms

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*