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Forward Swap

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Forward Swap
A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a "forward start swap," "delayed start swap," and a "deferred start swap."

Notes:
For example, if an investor wants to hedge for a five-year duration beginning one year from today, this investor can enter into both a one-year and six-year swap, creating the forward swap that meets the needs of his or her portfolio. Sometimes swaps don't perfectly match the needs of investors wishing to hedge certain risks.



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Forward swaps are used to take a view on forward interest rates, amortizing swaps are used to match the underlying principal to an amortizing loan, while zero-coupon swaps are useful if the floating rate receiver has a short-term cash flow deficit.
Explore the Pricing of Constant Maturity Swaps, along with their ... by Business Wire
Forward swaps are used to take a view on forward interest rates, amortizing swaps are used to match the underlying principal to an amortizing loan, while zero-coupon swaps are useful if the floating rate receiver has a short-term cash flow deficit.
Explore Popular Interest Rate and Currency Swap Variations with this ... by Business Wire
The variable interest rate on the series 2004 bonds will be converted to a synthetic fixed-rate through a forward swap agreement executed last year with Goldman Sachs Capital Markets.
Fitch Rates Wayne County Airport Auth, MI's $11.6MM Airport Revs 'A' by Business Wire
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