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Notional Value

The nominal value that is used to calculate swap payments. For example, in an interest rate swap, each period's interest rates are...

Stub Risk

The risk that arises because of the duration of the floating leg of a swap. This occurs because once the...

Snowball IRS

It stands for a snowball interest rate swap; a structured swap which consists of a funding leg and a coupon...

Snowball Interest Rate Swap

A structured swap which consists of a funding leg and a coupon payment stream, whereby the coupon payment made on...

Snowball

A hybrid derivative instrument that allows investors harboring a strong feeling that rates will fall below a specific level to...

Put Swaption

A put option on a swap in which the buyer has the right, but is not obliged, to enter into...

Floating Rate Repo

A type of repo (repurchase agreement) in which the interest rate is changed (floats) in accordance with change in an...

Floating Rate Note

A medium to long-term debt obligation (note) that has its coupon rate linked to some reference interest rate (specifically a...

Drop-Lock Bond

A floating-rate bond that converts into a fixed coupon obligation when a reference interest rate (market interest rate) drops below...

Perfect Swap

A swap agreement that is made between a municipality (a city or town local council) and a financial intermediary, in...