Filter by Categories
Accounting
Banking

Derivatives




Accumulation Swap


An interest rate swap whereby the notional principal amount grows over its time to expiration. Such a swap is particularly fitting in a case where a fixed-rate payer has expanding working capital requirements. The accumulation swap has a wide variety of names, including: appreciating swap, construction loan swap, escalating swap, escalating principal swap, drawdown swap, staged drawdown swap, accreting swap, set-up swap, and accreting principal 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    Your email address will not be published.*