Instrument Item: Swap
Generated on 2014/06/19 at 04:58:13 AM
Instrument Item: Swap
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| Description (HTML) | A swap is a derivative instrument that permits counterparties to exchange (or "swap") a series of cash flows based on a specified time horizon. Typically, one series of cash flows would be considered the fixed leg of the agreement while the other would be less predictable, such as cash flows based on an interest rate benchmark or a foreign exchange rate, usually referred to as the floating leg. The swap agreement as it is known, which would be agreed upon by both parties, will specify the terms of the swap, including the underlying values for the legs along with the payment frequency and dates. A party would enter a swap typically for one of two reasons, as a hedge for another position or to speculate on the future value of the floating leg's underlying index/currency/etc. | |||||||||
| Source Description | ||||||||||
| Source URL | http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp | |||||||||
| Document | No document attached... | |||||||||
| Lifecycle - Exist Start Date | UNKNOWN | |||||||||
| Lifecycle - Exist End Date | UNKNOWN | |||||||||
| Item Quality Status (Item Quality Status) | Acceptable | |||||||||
| Updated by | webea.09 | |||||||||
| Updated on | 2014-04-07 18:35:05 | |||||||||
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