Forward Swap

(redirected from Forward Swaps)

Forward Swap

An agreement between two investors to swap assets, interest rates, or almost anything else on a set date in the future. A forward swap exists in order to provide investors with flexibility in accomplishing their investment goals; for example, the counterparties may wish to use a swap to hedge their risk, but are willing to accept the risk for the first year of an investment. A forward swap can consist of more than one swap: for example, the counterparties can agree to swap interest rates beginning in six months and then to swap different interest rates a year after that.
Mentioned in ?
References in periodicals archive ?
3, 2012 /PRNewswire/ -- Leading energy and commodities price reporting organisation Argus has launched a new series of northeast Asian LNG forward swaps assessments in the Argus LNG Daily report, known as ANEA [sup.
2006), Olivier and Jeffery (2004), Smith (2005), and Cairns (2007) to derive a consistent framework for pricing a wide range of linear survivor derivatives, such as forwards, basis swaps, forward swaps, and futures.
It will offer broker services for trading of sukuks (Islamic equivalent of bonds), inter-bank money market transactions by murabaha (commodity-based Islamic finance); credit default swaps (CDS) and global currency products such as foreign exchange and forward swaps.
The proposals fell into three major categories: forward swaps, forward bonds and tender programs.
The Fund also utilized interest rate swaps with a notional amount of $1,350 million for current income, while hedging the majority of the interest rate risk with offseting six-month to two-year forward swaps.
For the first time users of plain vanilla and forward swaps will have the opportunity to trade standardized, centrally-cleared interest rate swaps on a multilateral, neutral electronic platform.
In addition, he is experienced with derivative structures and has successfully negotiated interest rate swaps and forward swaps, options, and float and forward float agreements.
DENVER & PERTH, Australia -- Samson Oil & Gas Limited (NYSE Alternext US: SSN) (ASX: SSN) today entered into a series of fixed forward swaps with respect to natural gas indexed at the Colorado Interstate Gas ("CIG") price point.
Including all offering expenses and the settlement of the forward swaps described below, the all-in effective interest rate of the unsecured notes is 5.
Samson will lose around US$30,000 in revenue as a result of this shut in, but will be compensated through the two fixed forward swaps that it has in place for this gas.
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.