Derivatives

Cap and Floor

August 18, 2021
Derivatives

Anticipatory Hedge

August 18, 2021

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An inflation-indexed swap where the fixed rate payments are made on an annual basis. That is, an interest rate swap where one party receives floating interest payments and the other receives fixed real interest rate in addition to actual inflation rate.

It is also referred to as a YY Swap, or year-to-year (year-on-year) swap.

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