Meaning of swap
Swap
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Enterprise risk management
Glossary of enterprise risk management terms
Meaning and definition of swap :
Swap: An OTC derivative instrument with which two parties periodically exchange payments based upon the value of one or more market indices. The most common form of swap is a ‘vanilla’ interest rate swap. With that structure, one party pays interest at a fixed rate while the other pays according to a floating rate such as LIBOR.
For the term swap may also exist other definitions and meanings, the meaning and definition indicated above are indicative not be used for medical and legal or special purposes.
Source : http://www.vedpuriswar.org/glossary/ERM%20Terms.doc
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Glossary of enterprise risk management terms
Swap
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