Tag: swap
Keepwell Agreement
What is a Keepwell Agreement
A Keepwell Agreement is a contract between a parent company and its subsidiary stating that the subsidiary will not be...
Hara-Kiri Swap
What is 'Hara-Kiri Swap' An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its...
Yield Pickup
What is 'Yield Pickup' The additional interest rate an investor receives when selling a lower-yielding bond in exchange for a higher-yielding bond....
Macroeconomic Swap
What is 'Macroeconomic Swap' A type of derivative designed to help companies whose revenues are closely correlated with business cycles to reduce...
Absolute Interest
What is 'Absolute Interest' Total and complete ownership of an asset or property. An individual with an absolute interest has both a...
Absolute Rate
What is 'Absolute Rate' The fixed portion of an interest-rate swap, expressed as a percentage rather than as a premium or a...
Rate Anticipation Swap
What is 'Rate Anticipation Swap' A type of swap in which bonds are exchanged according to their current duration and predicted interest...
Range Accrual
DefinitionIn finance, a range accrual is a type of derivative product very popular among structured-note investors. It is estimated that more than US$160 billion...
Callable Swap
What is 'Callable Swap' An exchange of cash flows in which one counterparty makes payments based on a fixed interest rate, the...
Call Swaption
What is 'Call Swaption' A type of option between two parties that can be exercised on a swap where the buyer of...