Equity Derivatives and Structured Products Glossary: Semi-fixed swap


en			ru			jp

Home

Knowledge Base

Equity Derivatives and Structured Products Glossary

Semi-fixed swap

Back

Semi-fixed swap

Semi-fixed swap

An Interest rate Swap with two possible fixed rates, which can be tailored to suit bullish or bearish market views. The rate paid by the fixed-rate payer depends on whether current Libor (or another reference rate or asset) is above or below a predetermined level. In a typical structure, if Libor is below the Trigger level, the lower of the two rates is paid, if it is above, the higher is paid. These swaps can be used to create asymmetric Risk exposures, ie, cheaper fixed-rate funding for an oil producer when oil prices are Low, or an enhanced Yield for an insurance company when Equity prices are falling.

Posted by Privatebanking.com

Back

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.

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.

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