An interest rate swap in which the floating rate (LIBOR) is set in advance, rather than in arrears. That is, the floating rate is reset at the beginning of the previous period except for the first period where the floating rate is set at the beginning of the corresponding period as in LIBOR-in-arrears swap. That implies that the floating rate periods, except the first one, are shifted back by one period. By this, the fixed-rate payer can, in a positive yield curve environment, pay a lower fixed rate against receiving the same floating rate in advance.