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High Coupon Swap
H
High Coupon Swap
A swap where a fixed rate payment is above the market rate (any
underlying
bond
or
note
is selling at a premium). The receiver of the high coupon may pay an
upfront fee
as compensation for the higher cash flow. Also called
Premium Swap
,
Non-Par Swap
. See
Off-Market Coupon Swap
.
Glossary
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