|
Swap Rate
|
(1) The market interest rate on the fixed rate side of a swap. At the time the swap is initiated, the swap rate will typically be the same as the fixed rate payment (adjusted for any negotiated premium or discount). As rates move, the swap rate may differ materially from the fixed rate exchanged under a specific swap agreement. (2) Forward points on a currency rate. Adjustments to the spot exchange rate to compensate for interest rate parity differences across the two currencies.
|
