Generated on 2014/06/19 at 04:58:12 AM


Type List | Item List

Instrument Item: Quanto Swap



Acronym or Abbreviation
Alias or Synonym differential, diff swap
Key Words
Description (HTML) A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates.

Though they deal with two different currencies, payments are settled in the same currency. Fixed-for-floating quanto swaps allow an investor to minimize foreign exchange risk. This is achieved by fixing both the exchange rate and interest rate at the same time. Floating-for-floating swaps have slightly higher risk, since each party is exposed to the spread between each country's currency interest rate.

Source Description Investopedia
Source URL http://www.investopedia.com/terms/q/quantoswap.asp
Document No document attached...
Lifecycle - Exist Start Date UNKNOWN
Lifecycle - Exist End Date UNKNOWN
Item Quality Status (Item Quality Status)
Updated by webea.09
Updated on 2014-04-08-14.50.24.878000
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SwapInstrument Swap