Home > Glossary > Rate Differential Swap
Rate Differential Swap
Categories: Forex,
A swap in which the two payments are tied to two currencies in two different interest rate indexes, but in which the payments are exchanged in one base currency. For example, a rate differential swap might have payments denominated in u.s. dollars, but could have one set tied to the Japanese LIBOR and another to the U.S. LIBOR. The Japanese LIBOR payments will still be made in dollars. The rate differential swap allows investors to profit from changes in the interest rates of the two indexes. also called cross-index basis swap, cross-rate swap, differential swap, interest rate index swap, LIBOR differential swap.
Featured term of the day
Definition / Meaning of
Retired Directors Liability Policies
Categories: Insurance,
removed
Most popular terms
1. Home Equity2. Principal Register
3. MCS-90 Endorsement
4. Portable Benefits
5. Contractors All Risks (CAR) Insurance
6. Hope Scholarship Credit
7. National Highway Traffic Safety Administration (NHTSA)
8. Specialist
9. Personal Profit Exclusion
10. Contingent Commission
Search a term
Browse by alphabet
A | B | C | D | E | F | G |
H | I | J | K | L | M | N |
O | P | Q | R | S | T | U |
V | W | X | Y | Z | # |
Browse by category
AccountingBanking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital