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Carry on a Swap

The carry on a swap, as with that of any financial instrument (e.g. a bond), is the difference between a...

Switch LIBOR Swap

A cross currency basis swap which doesn't involve currency conversion. For example, assume short-term interest rates in Japan are very...

Structured Swap

A swap that is constructed using add-ons or additional features (e.g., optionality) in order to alter its risk-return profile for...

Off-Market Rate Swap

Typically, an interest rate swap whose fixed rate payment substantially deviates from currently prevailing coupon rates on debt instruments with...

On-Market Swap

An interest rate swap or currency swap that has a net present value of zero (NPV=0). Generally, the two legs...

CPI-Linked Swap

An interest rate swap (IRS) in which one leg is tied to some inflation index (consumer price index). It enables...

Performance Swap

An interest rate swap that is subject to interest rate cap in which the fixed-rate payer pays the at-market rate...

Right-Way-Around Swap

A cross-currency swap in which the bank sponsor/ arranger pays a hard currency (like dollar, euro, etc) and receives a...

Fixed Rate Reset Swap

A type of interest rate swap (IRS) or cross-currency swap (xccy swap) in which the fixed rate leg resets periodically...

APS

An interest rate swap whereby the notional principal amount grows over its time to expiration. Such a swap is particularly...