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Accreting Swap
(redirected from Accreting Principal Swaps)

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Accreting Swap
A swap in which the notional amount increases over time. This is usually a fixed interest rate swap but also occasionally a currency swap. The legs of the swap are calculated at a fixed rate, but the principal over which they are calculated goes up over time. This is most commonly used in the construction industry and other projects in which costs rise over the life of the venture.


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