What is payer swap?Payer
The side of a swap that pays fixed and receives floating, which gains when rates rise.
Learn “payer swap” in an animated lesson
- Interest Rates & SwapsDV01: What One Basis Point Is Worth
If rates move just 0.01%, how much does your swap or bond gain or lose? DV01 turns interest rate risk into money, and it tells you how much notional to use when hedging.
- 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.
- Interest Rates & SwapsSwap P&L and Valuation
Once rates move after signing, the swap's value changes. Drag the rate and see whether the payer or the receiver comes out ahead.
Related terms
See how “payer swap” works for yourself with an animation you can drag and play.
Go to “DV01: What One Basis Point Is Worth”