Finance
CBO
August 18, 2022
Derivatives
Restoration Option
August 18, 2022

A swap which combines an interest rate swap and a swaption on double the notional principal amount (NPA) of the interest rate swap. Under the terms of a reversible swap, one of the parties has the right to reverse the swap, by either switching from being a fixed rate payer into being a float rate payer, or the other way round.

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