Currency interest rate swap example

Currency interest rate swap example

Author: Booty Pie Date: 14.07.2017

A longer term derivative contract which is used to transform longer term interest rate-related obligations or assets in one currency, into another currency.

Cross-currency interest rate swap - ACT Wiki

For example, a GBP-based firm with a USD borrowing might use a CCIRS to transform its USD borrowing into a synthetic GBP borrowing. The concept of a CCIRS was developed from the same-currency interest rate swap market, which most commonly swaps fixed and floating interest rate streams in the same currency.

What is the difference between a currency and interest rate swap? | Investopedia

Same currency interest rate swaps exchange interest flows in the same currency but calculated on different bases. CCIRSs usually exchange currency principal amounts at their maturity unlike same-currency interest rate swaps.

currency interest rate swap example

Cross currency interest rate swaps are also known as Cross currency swaps, Currency interest rate swaps or Foreign currency swaps. A CCIRS exchanges interest flows denominated in different currencies. They should not be confused with short-dated FX swaps, which are different.

currency interest rate swap example

See also Cross currency swap Currency risk Currency swap Foreign exchange swap GBP Interest rate swap Swap Synthetic USD. Navigation menu Views Page Discussion View source History. Tools What links here Related changes Special pages Permanent link Page information.

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