Interest Rate Swap
An agreement between two parties where one stream of future interest payments is exchanged for another based on a specified principal amount. Interest rate swaps often exchange a fixed payment for a floating payment that is linked to an interest rate (most often the LIBOR). A company will typically use interest rate swaps to limit or manage exposure to fluctuations in interest rates, or to obtain a marginally lower interest rate than it would have been able to get without the swap.
- 词性: proper noun
- 行业/领域: 金融服务
- 类别 Financial instruments
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- Timmwilson
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(Beijing, China)