It stands for zero-coupon inflation swap; a type of inflation derivative; an inflation-indexed swap which has both cash flow legs paying out on maturity. This swap is based on an exchange of the total return on an inflation index (inflation-pegged income stream) for a compound fixed breakeven rate, over a specific period of time. It allows investors to hedge away a breakeven exposure to inflation rate.

Thia swap is also known as a breakeven swap or a breakeven inflation swap.