Word Pronunciation & Dictionary

interest rate swap

Word Rarity Rare

Frequency: Zipf frequency 3.89 in modern English

Syllables: in-ter-est rate swap
IPA

21

Scrabble Score

16

Letters

3

Syllables

9

Unique Chars

Meaning

noun

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.

Inflected Forms

interest rate swaps (plural) IRS (abbreviation)

Frequently Paired Words

swaption

Questions

What does interest rate swap mean?: 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.

How to pronounce interest rate swap

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