forward swap agreement investment & finance definition
A transaction that has two parts: The first is a spot transaction, where something is bought or sold today, and the second is a transaction in the future that reverses the previous trade.
FORWARD SWAP AGREEMENT - An agreement whereby two parties enter into an interest rate swap agreement to begin at a future date. See: INTEREST RATE SWAP CONTRACT.
FREDDIE MAC (FEDERAL HOME LOAN MORTGAGE CORPORATION) - See: AGENCIES.
A swap agreement between a municipality and a financial intermediary. Also known as a "perfect swap" or "actual rate swap".
Bilateral netting - the consolidation of all swap agreements between two counterparties into one master agreement.
In order to hedge that risk, the trader could enter a swap agreement for the same stock, paying a small fee to "hold" it while not actually having to pay for the stock itself.
Interest rate swap (IRS): A swap agreement where interest payments on a certain amount of principal are exchanged between two parties on a specified date.
Debt-for-equity swap
A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time.
Debt instrument
An asset requiring fixed dollar payments, such as a government or corporate bond.
Let’s now assume that the swap agreement defined that the two entities will exchange interest payments on their principle amounts every year, with the first payment due one year after the initial exchange of the principle.
A clause included in certain debt securities and swap agreements stating that the immediate collection of payment and termination of contract will take place should any number of clauses being violated by the borrower including default or a downgrade ...
The buyer of a swaption has the right to enter into an interest rate swap agreement by some specified date in the future. The swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer.
ProShares are non-diversified and entail certain risks, including risk associated with the use of derivatives (futures contracts, swap agreements and similar instruments), imperfect benchmark correlation, leverage and market price variance, ...
In connection with these structures, issuers often enter into customized options and/or swap agreements with a third party. The third party may be an investment bank, a subsidiary of an investment bank, a swap dealer or another entity.
of major international swaps dealers, which has published the Code of Standard Wording, Assumptions and Provisions for Swaps, or Swaps Code, for U.S. dollar interest rate swaps, as well as standard master interest rate and currency swap agreements ...
The swap agreement defines the dates when the cash flows are to be paid and the way they are calculated.
 See also: Swap, Market, Exchange, Interest, Interest Rate
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