interest rate swap

English

Noun

interest rate swap (plural interest rate swaps) (Abbreviated as: IRS)

1. (finance) A contract to exchange the benefit of one interest rate with another. Often a fixed interest rate is 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.

Translations

financial contract

• Finnish: koronvaihtosopimus
• German: Zinsswap m

See also

• swaption