Derivatives

Rolling-Stack Hedge

July 21, 2021
Finance

Deferred Callable Bond

July 21, 2021

Share

A swap in which the counterparties exchange payments based on a notional principal specified in a portfolio of stocks. It is similar to interest rate swaps in many aspects, literally: the existence of an underlying notional principal, the fixed maturity date, and the commitment to pay floating for fixed versus the commitment to pay fixed for floating.

Leave a Reply

Related Tags

All Topics in the Letter