Exchanges
Front Ending
August 13, 2021
Derivatives
Payer Swaption
August 13, 2021

It stands for pay-as-you-go cap; an interest rate cap that requires its holder to pay only a small upfront premium compared to corresponding standard caps, and allows for deciding, prior to each reset date, whether to go on with the cap, and hence pay the next installment, or not.

The pay-as-you-go cap is also known as a installment cap.

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