Examples of Interest Rate Swap in a sentence
For example, the party receiving fixed in an ordinary Interest Rate Swap receives the excess of the fixed coupon payment over the floating rate payment.
The fund can buy an Interest Rate Swap receiving fixed interest rate and paying NSE MIBOR.
Interest Rate Swap - An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified period.
Illustration: Interest Rate Swap (IRS) Assume that a Mutual Fund has INR 10 crore, which is to be deployed in overnight products for 7 days.
The purchased stock/ index is returned to the lender as per the agreed terms.The scheme may use fixed income derivative instruments like Interest Rate Swaps, Forward Rate Agreements or such other derivative instruments as may be introduced from time to time and as may be permitted under the SEBI (Mutual Fund) Regulations Interest Rate Swaps(IRS): An Interest Rate Swap is an agreement whereby two parties agree to exchange periodic interest payments.