A basis swap is an interest rate swap which involves the exchange of two floating rate financial instruments. A basis swap functions as a floating-floating interest rate swap under which the floating rate payments are referenced to different bases.
Read more about Basis Swap: Usage of Basis Swaps For Hedging, Basis Swaps in Energy Commodities
Famous quotes containing the words basis and/or swap:
“My dream is that as the years go by and the world knows more and more of America, it ... will turn to America for those moral inspirations that lie at the basis of all freedom ... that America will come into the full light of the day when all shall know that she puts human rights above all other rights, and that her flag is the flag not only of America but of humanity.”
—Woodrow Wilson (1856–1924)
“If we should swap a good library for a second-rate stump speech and not ask for boot, it would be thoroughly in tune with our hearts. For deep within each of us lies politics. It is our football, baseball, and tennis rolled into one. We enjoy it; we will hitch up and drive for miles in order to hear and applaud the vitriolic phrases of a candidate we have already reckoned we’ll vote against.”
—Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)