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:
“That food has always been, and will continue to be, the basis for one of our greater snobbisms does not explain the fact that the attitude toward the food choice of others is becoming more and more heatedly exclusive until it may well turn into one of those forms of bigotry against which gallant little committees are constantly planning campaigns in the cause of justice and decency.”
—Cornelia Otis Skinner (1901–1979)
“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)