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Interest rate swap |
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Interest rate swapAn arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid. The most common and simplest deal involves one party paying a fixed rate of interest and the other paying a floating rate. IRSs are used for hedging, speculation or arbitrage.Similar MatchesInterest equalization taxInterest equalization taxA tax levied between 1963 and 1974 by the United States of 15% on interest received from foreign borrowers, intended to discourage capital outflows. Open interestOpen interestThe net amount of outstanding open positions, either long or short, in a given futures or options contract. Market interest rateMarket interest rateRates of interest paid on deposits and other investments, determined by the interaction of the supply of and demand for funds in the money market. Interest rateInterest rateThe monthly effective interest rate. For example, the periodic rate on a credit card with an 18% annual percentage rate is 1.5% per month. Export financing interestExport financing interestInterest income derived from goods manufactured in the US and sold outside the US as long as not more than 50% of the value is imported into the US Further SuggestionsInterest sensitive stockInterest interest in possession interest cover Covered interest arbitrage Interest rate parity theorem Deferred interest mortgage And interest Covered Interest Rate Parity Real interest rate Rate of interest Party in interest gross interest Add on interest Interest only loan interest interest payable Applied or nominal interest rate Capitalized interest Unearned interest Net interest cost (NIC) Minority interest Interest in Arrears Real interest rate variable interest rate |
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