An interest rate swap in which the fixed rate payment is reset in response to a pre-agreed change in market rates. It is a deferred-start interest rate swap in which the fixed-rate payment is reset to downward (upward) to a pre-agreed level if, between the contract time and the initiation of the swap, the floating reference rate drops below (rises above) a predetermined level.
Derivatives
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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