Swap Rate
The rate of the fixed portion of a swap as determined by its particular market. This is the rate at which the swap will occur for one of the parties entering into the agreement. Investopedia Says:
These rates are quoted by the market and will be almost identical to the rate used for the swaps, minus any premiums added.
For example: 1) The interest rate associated with the fixed portion of an interest rate swap.
2) The exchange rate associated with the fixed portion of a currency swap. Related Terms:
Bank Bill Swap Bid Rate - BBSY
Currency Swap
Interest Rate Swap
Swap
Swap Curve |