Interest rate swap (IRS) - Financial definition
Financial acronyms
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Concise definition of the term interest rate swap
An interest rate swap is a financial transaction in which two counterparties agree to exchange interest payments of different types on a given notional amount.
Comprehensive definition of the term interest rate swap
The most frequent type of interest rate swap is the so-called plain vanilla swap, in which one counterparty pays a fixed rate and the other pays a floating rate.