Types
Being OTC instruments, interest rate swaps can come in a huge number of varieties and can be structured to meet the specific needs of the counterparties. For example, the legs of the swap can be in the same currency or in different currencies. The notional of the swap could be amortized over time. The reset dates of the floating rate could be non-regular, etc. However, in the interbank market, just a few, standardized types are traded. They are listed below. Each currency has its own standard market conventions regarding the frequency of payments, the day count conventions and the end-of-month rule.
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Famous quotes containing the word types:
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—Anton Pavlovich Chekhov (1860–1904)
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—Henry Brooks Adams (1838–1918)
“If there is nothing new on the earth, still the traveler always has a resource in the skies. They are constantly turning a new page to view. The wind sets the types on this blue ground, and the inquiring may always read a new truth there.”
—Henry David Thoreau (1817–1862)