interest rate swap (English, noun)
expansion: interest rate swap (plural interest rate swaps, abbreviation IRS)
Senses:
topics: business
finance
glosses: 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:
form: interest rate swaps
tags: plural
form: IRS
tags: abbreviation