INTEREST RATE SWAP

 

 
An interest rate swap is a derivative contract in which two counterparties agree that a stream of future interest payments is exchanged for another based on a specified principal amount. Interest rate swaps usually involve the exchange of a fixed interest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates or to obtain a marginally lower interest rate than would have been possible without the swap. Read more: Interest Rate Swap https://www.investopedia.com/terms/i/interestrateswap.asp#ixzz4zo8KBZTD