interest rate swap
interest rate swap noun: a contract to exchange the benefit of one interest rate with another. Often a fixed interest rate is exchanged for a variable rate so as to allow one party to remove an exposure to a variable rate for which they pay a premium on the fixed rate in order to compensate for this 'insurance'. The two rates can also be based on different currencies.
Noun
interest rate swap (plural interest rate swaps, abbreviation IRS)
- A contract to exchange the benefit of one interest rate with another. Often a fixed interest rate is exchanged for a variable rate so as to allow one party to remove an exposure to a variable rate for which they pay a premium on the fixed rate in order to compensate for this 'insurance'. The two rates can also be based on different currencies.
Forms of interest rate swap
| plural | interest rate swaps |
|---|---|
| abbreviation | IRS |
Questions about interest rate swap
- What does interest rate swap mean?
- Interest rate swap means a contract to exchange the benefit of one interest rate with another. Often a fixed interest rate is exchanged for a variable rate so as to allow one party to remove an exposure to a variable rate for which they pay a premium on the fixed rate in order to compensate for this 'insurance'. The two rates can also be based on different currencies.
- What part of speech is interest rate swap?
- Interest rate swap is a noun.
- What is the plural of interest rate swap?
- The plural of interest rate swap is interest rate swaps.
Words near interest rate swap in the dictionary
Source and license
Adapted from Wiktionary: interest rate swap (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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