en     ru     jp	Login

Home

News

Library

Newsletters

Event Calendar

Advertise

About

Contact

FAQ

Home        Knowledge Base        Equity Derivatives and Structured Products Glossary        Mortgage swap

Back

Mortgage swap

Search definitions        Search   Mortgage swap An asset Swap attached to fixed-rate mortgage payments. Mortgage swaps allow investors to enjoy the flows from a Portfolio of mortgages without taking a mortgage asset on to their Balance Sheet. The principal reduces if and when the outstanding mortgage principal reduces (which can occur if the mortgage Holder pays off the mortgage or defaults). Such swaps are complicated because although the fixed-rate receiver receives a higher rate than on a normal Swap, the amortisation of the principal is not just a function of Interest rates. The largest mortgage Swap market is in the US; in 1992 and 1993 prepayments accelerated because of historically Low Interest rates. See also index Amortising Swap, reverse index Amortising Swap Posted by  Privatebanking.com     Back     Print     Email

Privatebanking.com Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.           Read more

Ascent Limited Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.           Read more

Home News Library Newsletters Event Calendar Advertise About Contact FAQ

Privacy Policy     Terms of Service

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.