Filter by Categories
Accounting
Banking

Derivatives




Inverted Curve Enhancement Swap


An interest rate swap that places a minimum level (floor) under the floating rate in consideration for a larger fixed rate. In other words, the floating-rate receiver seeks to guarantee a minimum level of floating rate payments (downside protection) and thus pays in return for this downside protection a higher fixed rate. Such a swap is particularly of use in markets characterized by an inverted yield curve.

It is known for short as an ICE swap.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*