interest rate derivative
1interest rate derivative — UK US noun [C] FINANCE ► a financial product that gives the right to pay or receive an amount of money at a future time, based on a particular interest rate: »Many of the world s top companies use interest rate derivatives to control their… …
2Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …
3Interest-Rate Derivative — A financial instrument based on an underlying financial security whose value is affected by changes in interest rates. Interest rate derivatives are hedges used by institutional investors such as banks to combat the changes in market interest… …
4Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… …
5Interest Rate Call Option — An interest rate derivative in which the holder has the right to receive an interest payment based on a variable interest rate, and then subsequently pays an interest payment based on a fixed interest rate. If the option is exercised, the… …
6Interest rate cap and floor — Interest rate c An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for… …
7interest rate swap — An agreement under which two parties agree to exchange or swap a series of payments corresponding to each other s interest payment obligations. See also swap. + interest rate swap USA A type of over the counter derivative (OTC derivative) under… …
8Interest rate option — is a derivative financial instrument.The global market for exchange traded interest rate options is notionally valued by the Bank for International Settlements at $3,075,400 million in 2005. See also * Derivative (finance) …
9Interest rate — Finance Financial markets Bond market …
10Interest rate future — An Interest Rate Future is a futures contract with an interest bearing instrument as the underlying asset.Examples include Treasury bill futures, Treasury bond futures and Eurodollar futures.The global market for exchange traded interest rate… …
