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Step up swap |
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Step up swapAn interest rate swap on which the notional principal increases according to a predetermined schedule.Step up swap Similar MatchesStepped interest debenture stocksStepped interest debenture stocksA debenture stock where the rate of interest payable to lenders is increased in stages over the initial life until a certain rate is reached. Thereafter, the rate remains fixed until the redemption date. This type of debenture is advantageous to an investment trust in that interest payments will be lower than the norm in the initial years (whilst the trust consolidates its growth) and above the norm in the later years (when it will be expected that the trust's assets can afford the extra interest). Step upStep upTo increase, as in step up the tax basis of an asset. Stepped discount mortgageStepped discount mortgageWhere the discount is, for example, fixed at one level for one year and then a slightly lesser level for two further years. Remember it is the percentage discount that is stepped and not the monetary amount, so your repayment can still vary. Step up bondStep up bondA bond that pays a lower coupon rate for an initial period, and then increases to a higher coupon rate. Related: Deferred-interest bond, payment-in-kind bond. Ross, StephenRoss, StephenDeveloper of the Arbitrage Pricing Theory. Finance professor at MIT. Further SuggestionsStepped fixed rate mortgagestepped preference shares Three steps and a stumble rule Step aside Step down note Seven Step Meeting Process |
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