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23 Results for Tag: swap

Keepwell Agreement

Keepwell Agreement What is 'Keepwell Agreement' A contract between a parent company and its subsidiary to maintain solvency and financial backing throughout the term set in the agreement.

Hara-Kiri Swap

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 name from Japanese banks' and securities h

Yield Pickup

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. The bond with the lower yie

Macroeconomic Swap

Macroeconomic Swap What is 'Macroeconomic Swap' A type of derivative designed to help companies whose revenues are closely correlated with business cycles to reduce their business-cycle ri

Absolute Interest

Absolute Interest What is 'Absolute Interest' Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of sa

Absolute Rate

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 discount to a reference rate. Explaining 'Absolu

Rate Anticipation Swap

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 rate movements. A rate antici

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 of Range Accrual indexed on

Callable Swap

Callable Swap What is 'Callable Swap' An exchange of cash flows in which one counterparty makes payments based on a fixed interest rate, the other counterparty makes payments based on a fl

Call Swaption

Call Swaption What is 'Call Swaption' A type of option between two parties that can be exercised on a swap where the buyer of the swap has the right, but not obligation, to receive an agre
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