Real Estate
Cash-on-Cash Return
October 14, 2022
Real Estate
CoC Return
October 14, 2022

A swap agreement that entails the exchange of two payment types at different times and/or at different intervals. In other words, payment streams are not exchanged on the same date, but rather are mismatched. For example, the floating rate is payable semi-annually while the fixed rate is payable quarterly.

As such, the mismatch between what is paid and received exposes one party or both parties to counterparty risk (settlement risk).

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts