Float Float Interest Rate Swap

Definition

Float Float Interest Rate Swap. An interest rate swap that exchanges cashflows based on two different floating interest rates

This is a swap in which two parties swap variable interest rates based on different money markets, and this is usually done to limit interest-rate risk that a company faces as a result of having differing lending and borrowing rates.

Synonyms

• Basis Rate Swap

See Also

• http://www.investopedia.com/terms/b/basisrateswap.asp

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.