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Back Set Swap


An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined based on the value or level of a specific reference rate at the end of the reset period. Once defined, the rate is applied backwardly or retroactively to that period.

The back-set swap has several other names including: in-arrears swap, swap-in-arrears, arrears swap, LIBOR in-arrears swap, reset swap, delayed reset swap, and back end set swap.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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