Interest Rate Swaps
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Interest rate swaps (IRS) are agreements to exchange interest payment streams with one another over a specified period. The commonly traded IRS are vanilla swaps, where the exchange is between fixed-rate payments and floating-rate payments based on the London Inter-Bank Offered Rate (LIBOR). Why would investors opt to invest in interest rate swaps?
- Video 1: Interest Rate Swap Part 1
- Video 2: Interest Rate Swap Part 2
Source: Khan Academy, https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/interest-rate-swaps-tut/v/interest-rate-swap-1
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Last modified: Wednesday, 5 March 2025, 11:43 AM