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Reset Swap
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An interest rate swap agreement with the floating rate payment based on the reference index rate at the end of the interest period rather than the rate at the start of the period. A floating rate receiver will prefer a reset swap when a rising yield curve (rising forward rate curve) implies higher rates in the future. Also called Arrears Swap, Back End Set Swap, LIBOR In-Arrears Swap, In-Arrears Swap (diagram).
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