What is interest rate swap?Interest Rate Swap
Two parties swap fixed interest for floating interest on the same notional, paying only the net difference.
Learn “interest rate swap” in an animated lesson
- Interest Rates & SwapsHedging a Floating-Rate Loan with a Swap
A company has a floating-rate loan and fears rising rates? Add a "pay fixed, receive floating" swap and the cost is locked in as fixed.
- Interest Rates & SwapsInterest Rate Swaps (IRS)
One side pays a fixed rate and the other pays a floating rate, and they exchange only the net interest. Watch the cash flows go back and forth along the timeline.
Related terms
See how “interest rate swap” works for yourself with an animation you can drag and play.
Go to “Hedging a Floating-Rate Loan with a Swap”