SWAPS

[sunandaC]

A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time.

The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties.


Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time.

US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years.

 

[rosemarry2]

A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time.

The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties.


Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time.

US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years.

hey buddy,

I am also uploading a document which will give more detailed explanation on Notes on Swaps - Derivatives in Plain Words.