Swaps (finance)

thumb|upright=1.2|Libor gets its name from the City of London.

financial swap agreement in case of default

contractual exchange of instruments, cash flows, or payments at preordained times

linear interest rate derivative involving exchange of interest rates between two parties

date on which the final payment is due on a loan or other financial instrument

foreign-exchange agreement between two institutions to exchange aspects of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency

A counterparty (sometimes contraparty) is a legal entity, unincorporated entity, or collection of entities to which an exposure of financial risk may exist. The word became widely used in the 1980s, particularly at the time of the Basel I deliberations in 1988.

financial contract

type of financial instrument

trade organization of participants in the market for over-the-counter derivatives

date when the value of an asset that fluctuates in price is determined

A swaption (a portmanteau of "swap" and "option") is an option granting its owner the right but not the obligation to enter into an underlying swap on specified terms at a future date. In practice the term is most commonly used for options on interest rate swaps, where the holder has the right to enter into a fixed-for-floating interest rate swap.

simultaneous purchase and sale of identical amounts of one currency for another

future yield on a bond

type of financial derivative contract

Calculation method for the accrual of interest

term within finance

in finance and investing

interest rate swaps for overnight loans