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Home > QFINANCE Dictionary > Definition of interest rate swap

Definition of

interest rate swap

Finance

trade of loans with different interest rates an exchange of two debt instruments with different rates of interest, made to tailor cash flows to the participants' different requirements. Most commonly a longer-term fixed rate is swapped for a shorter-term floating one.

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Definitions of ’interest rate swap’ and meaning of ’interest rate swap’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’interest rate swap’ and other financial terms with our online QFINANCE Financial Dictionary.

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