An interest rate swap (IRS) in which one payment leg is linked to a fixed spread over a benchmark rate, usually a non-standard benchmark rate, such as US treasuries.
It may also refer to an interest rate swap (IRS) agreement which is associated with an option giving the buyer the right to set the floating rate leg at a fixed spread over a benchmark treasury (usually a specific maturity on the Treasury yield curve) at some future date or during a specific period in the future.
Spreadlocks are often embedded within a deferred rate-setting swap (delayed rate-setting swap).
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