Aug 312020

A swap which typically has one floating leg based on a short term rate (e.g. six month libor) and the other floating leg based on a long term rate (say the 5 year swap rate or the ten year swap rate, which is reset every six months). Used primarily for taking views on the shape of the yield curve. Also called a Yield Curve Swap

Our life is a learning experience. Every day make sure you learn something new. Learn explanations of banking words such as Constant Maturity Swap (CMS) every day and you will fly!


Every comment you leave gets you an entry into the draw for 100 GBP of vouchers from Amazon UK. Next winner will be selected on [date].

Comment now!

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>