interest rate swap

English - English

Definition of interest rate swap in English English dictionary

A contract to exchange the benefit of one interest rate with another. Often a fixed interest rate being exchanged for a variable rate so as to allow one party to remove an exposure to a variable rate for which they pay a premium on the fixed rate in order to compensate for this 'insurance'. The two rates can also be based on different currencies

Hyphenation

in·ter·est rate swap

Turkish pronunciation

întrıst reyt swäp

Pronunciation

/ˈəntrəst ˈrāt ˈswäp/ /ˈɪntrəst ˈreɪt ˈswɑːp/