Interest rate swap - Revision history

imported>Doug Williamson: Add link.

2018-09-01T17:47:23Z

Add link.

← Older revision		Revision as of 17:47, 1 September 2018
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	* [[Basis swap]]		* [[Basis swap]]
	* [[Capital market]]		* [[Capital market]]
			* [[Contract for differences]]
	* [[Cross-currency interest rate swap]]		* [[Cross-currency interest rate swap]]
	* [[Derivative instrument]]		* [[Derivative instrument]]

imported>Doug Williamson: Identify context and fixed v floating leg exchange.

2018-09-01T09:07:12Z

Identify context and fixed v floating leg exchange.

← Older revision		Revision as of 09:07, 1 September 2018
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			''Derivative instruments - interest rate risk management - hedging''.

	(IRS).		(IRS).

	A longer-term interest rate derivative.		An interest rate swap is a longer-term interest rate derivative.


	An IRS is similar in its effects on interest expense or interest income to a Forward Rate Agreement (FRA).		An IRS is similar in its effects on interest expense or interest income to a Forward Rate Agreement (FRA).

	An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.		An IRS - like an FRA - is a contract for differences based on an agreed market interest rate (the reference rate).

	But the IRS usually has multiple future interest calculation and settlement dates, and is used by a corporate to hedge or transform longer term interest rate exposures.		But the IRS usually has multiple future interest calculation and settlement dates, and is used by a corporate to hedge or transform longer term interest rate exposures.
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	(Whereas an FRA is for the shorter term and for a single settlement receipt or payment.)		(Whereas an FRA is for the shorter term and for a single settlement receipt or payment.)


			The IRS contract for differences can also be viewed as an agreement to exchange:
			*A predetermined series of fixed interest payments, known as the fixed rate leg, or the fixed leg, for
			*A series of floating interest payments, determined over time by the reference rate, known as the floating rate leg, or the floating leg.


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	* [[Amortising swap]]		* [[Amortising swap]]
	* [[Basis swap]]		* [[Basis swap]]
			* [[Capital market]]
	* [[Cross-currency interest rate swap]]		* [[Cross-currency interest rate swap]]
			* [[Derivative instrument]]
			* [[Fixed leg]]
	* [[Foreign exchange swap]]		* [[Foreign exchange swap]]
	* [[Forward rate agreement]]		* [[Forward rate agreement]]
	* [[Forward start swap]]		* [[Forward start swap]]
			* [[Hedging]]
			* [[Interest rate risk]]
	* [[Notional amount]]		* [[Notional amount]]
			* [[Reference rate]]
			* [[Risk management]]
	* [[Swap]]		* [[Swap]]
	* [[Swap rate]]		* [[Swap rate]]

imported>Doug Williamson: Add link.

2016-08-29T18:54:28Z

Add link.

← Older revision		Revision as of 18:54, 29 August 2016
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	* [[Accreting swap]]		* [[Accreting swap]]
	* [[Amortising swap]]		* [[Amortising swap]]
			* [[Basis swap]]
	* [[Cross-currency interest rate swap]]		* [[Cross-currency interest rate swap]]
	* [[Foreign exchange swap]]		* [[Foreign exchange swap]]

imported>Doug Williamson: Update.

2016-07-05T17:43:43Z

Update.

← Older revision		Revision as of 17:43, 5 July 2016
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	An IRS is similar in its ~~effect~~ to a Forward Rate Agreement (FRA).		An IRS is similar in its effects on interest expense or interest income to a Forward Rate Agreement (FRA).

	An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.		An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.

imported>Doug Williamson: Add link.

2016-06-30T18:59:26Z

Add link.

← Older revision		Revision as of 18:59, 30 June 2016
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	* [[Amortising swap]]		* [[Amortising swap]]
	* [[Cross-currency interest rate swap]]		* [[Cross-currency interest rate swap]]
			* [[Foreign exchange swap]]
	* [[Forward rate agreement]]		* [[Forward rate agreement]]
	* [[Forward start swap]]		* [[Forward start swap]]

imported>Doug Williamson: Layout.

2015-05-11T09:08:57Z

Layout.

← Older revision		Revision as of 09:08, 11 May 2015
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	==Other links==		===Other links===
	[http://www.treasurers.org/node/9936 Treasury Essentials: interest rate swap, Will Spinney, March 2014]		[http://www.treasurers.org/node/9936 Treasury Essentials: interest rate swap, Will Spinney, March 2014]

	[[Category:Manage_risks]]		[[Category:Manage_risks]]

imported>Brianlenoach@hotmail.co.uk: Spacing.

2014-12-12T17:22:47Z

Spacing.

← Older revision		Revision as of 17:22, 12 December 2014
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	A longer-term interest rate derivative.		A longer-term interest rate derivative.


	An IRS is similar in its effect to a Forward Rate Agreement (FRA).		An IRS is similar in its effect to a Forward Rate Agreement (FRA).
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	But the IRS usually has multiple future interest calculation and settlement dates, and is used by a corporate to hedge or transform longer term interest rate exposures.		But the IRS usually has multiple future interest calculation and settlement dates, and is used by a corporate to hedge or transform longer term interest rate exposures.


	For example, an interest rate swap might be used to transform a longer term floating rate borrowing into a synthetic fixed rate borrowing.		For example, an interest rate swap might be used to transform a longer term floating rate borrowing into a synthetic fixed rate borrowing.

	(Whereas an FRA is for the shorter term and for a single settlement receipt or payment.)		(Whereas an FRA is for the shorter term and for a single settlement receipt or payment.)


	Other forms of capital market swap have been developed for the exchange of many other different types of cash flows and are used widely to hedge or transform a wide variety of related underlying exposures.		Other forms of capital market swap have been developed for the exchange of many other different types of cash flows and are used widely to hedge or transform a wide variety of related underlying exposures.

imported>Doug Williamson: Added link to article in the March 2014 Treasurer magazine

2014-05-17T09:45:34Z

Added link to article in the March 2014 Treasurer magazine

← Older revision		Revision as of 09:45, 17 May 2014
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	* [[Swap rate]]		* [[Swap rate]]

	[[Category:~~Interest_Rate_Risk~~]]
			==Other links==
			[http://www.treasurers.org/node/9936 Treasury Essentials: interest rate swap, Will Spinney, March 2014]

			[[Category:Manage_risks]]

imported>Doug Williamson: Category added 9/10/13

2013-10-09T13:50:37Z

Category added 9/10/13

← Older revision		Revision as of 13:50, 9 October 2013
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	* [[Swap]]		* [[Swap]]
	* [[Swap rate]]		* [[Swap rate]]

			[[Category:Interest_Rate_Risk]]

imported>Doug Williamson: Spacing 22/8/13

2013-08-22T15:03:29Z

Spacing 22/8/13

← Older revision		Revision as of 15:03, 22 August 2013
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	(IRS). A longer-term interest rate derivative.		(IRS).

			A longer-term interest rate derivative.

	An IRS is similar in its effect to a Forward Rate Agreement (FRA).		An IRS is similar in its effect to a Forward Rate Agreement (FRA).

	An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.		An IRS - like an FRA - is a contract for differences based on an agreed market interest rate.

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	Other forms of capital market swap have been developed for the exchange of many other different types of cash flows and are used widely to hedge or transform a wide variety of related underlying exposures.		Other forms of capital market swap have been developed for the exchange of many other different types of cash flows and are used widely to hedge or transform a wide variety of related underlying exposures.


	== See also ==		== See also ==
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	* [[Swap]]		* [[Swap]]
	* [[Swap rate]]		* [[Swap rate]]