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Inverse Floater Swap

An interest rate swap in which the floating-rate coupon increases in value as the underlying floating rate falls. In essence,...

LIBOR-In-Arrears Swap

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined...

Step Down Swap

An interest rate swap in which the fixed-rate payments are reduced over the term of the swap. It is a...

LIBOR-Squared Swap

An aggressive (and rare) form of interest rate swaps (literally a power swap) which was first entered into between Gibson...

Inverted Curve Enhancement Swap

An interest rate swap that places a minimum level (floor) under the floating rate in consideration for a larger fixed...

Ratchet Swap

A interest rate swap (fixed rate for floating rate or fixed-for-floating swap) whereby the fixed rate leg can be modified...

Prepaid Interest Rate Swap

An interest rate swap in which one party is under obligation to make periodic payments to another party based on...

Swap Assignment

A swap in which the payer of a given leg agrees to assign the other leg to a third party....

Swap Close-Out

The process of terminating a swap agreement by mutual consent of the parties at an early date before maturity. The...

Swap Desk

A group of individuals who run a portfolio of swaps (interest rate swaps) for a financial institution (such as commercial...