Plain Vanilla Swap

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Plain vanilla swap

See: Fixed for floating swap

Interest Rate Swap

The exchange of interest rates for the mutual benefit of the exchangers. The exchangers take advantage of interest rates that are only available, for whatever reason, to the other exchanger by swapping them. The two legs of the swap are a fixed interest rate, say 3.5%, and a floating interest rate, say LIBOR + 0.5%. In such a swap, the only things traded are the two interest rates, which are calculated over a notional value. Each party pays the other at set intervals over the life of the swap. For example, one party may agree to pay the other a 3.5% interest rate calculated over a notional value of $1 million, while the second party may agree to pay LIBOR + 0.5% over the same notional value. It is important to note that the notional amount is arbitrary and is not actually traded. This is also called a plain vanilla swap.

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Absolute Rate Absolute-Rate Swap Amortizing Interest Rate Swap Call Swaption Differential Swap Fixed for Floating Swap Fixed-Rate Payer Floating-Rate Payer Interest Rate Future Interest Rate Futures Contract Interest Rate Swap Overnight Index Swap Plain Vanilla Plain-Vanilla Receive Fixed Counterparty Receive Floating Counterparty Swap Option Swaption			That is, imagine that Firms A and B had structured the following agreement at date-T: (i) Enter into a plain vanilla swap for T + N periods with Firm A paying, and Firm B receiving, the fixed rate of [F. Default risk and innovations in the design of interest rate swaps by Brown, Keith C.; Smith, Donald J. / Financial Management ISDA estimates that on average 20 percent of plain vanilla swaps, and one-third of credit derivatives, are now being confirmed on an automated basis. Automation of Processing in Privately Negotiated Derivatives ... by Business Wire			pipestem lot Piramide de riesgo Piramide financeira Piramide finanziara Piso Pit Pit Committee pitch Pitch book PITI Pivot Pivot Point PK PKR PL Place Place financiere placed in service Placement Placement Ratio Plafond Plafond d'endettement Plafond prix Plage de taux Plain Vanilla Plain Vanilla Swap Plain-Vanilla plaintiff Plan Administrator Plan Agreement Plan Company Plan Completion Insurance Plan de acumulacion voluntaria Plan de inversion mensual Plan de pagos periodicos Plan de reduction del deficit Plan de reduction du deficit Plan de reinversion dividendos Plan de reparticion de utilidades Plan for Reorganization Plan Participant Plan Participants Plan Provider Plan Sponsor Plan Sponsors Planejamento centralizado Planejamento organizacional Planned Amortization Class Planned Capital Expenditure Program Planned financing program planned unit development			plain text plain text plain text Plain Text Alternative Plain Text Clear to Send Plain Text Data Mode Plain Text Local Loopback Plain Text Markup Language Plain Text Monitor Plain Text Receiver Ready Plain Text Remote Loopback Plain Text Request to Send Plain Text Terminal Ready Plain Text Terminal Timing Plain Text Test Mode Plain Text User Interface plain tile plain tiles plain tract Plain treasure flower Plain Truth plain turkey plain turning plain vanilla plain vanilla plain vanilla Plain Vanilla Option Plain Vanilla Options Plain Vanilla Swap Plain View Display Plain view doctrine Plain view rule plain wanderer plain weave plain weave Plain White T's Plain White T's Plain White T's plain whorl plain wool plain wool plain wool plain wool Plain Words Plain Words, a guide to the use of English Plain, the plain-bodied plain-bodied plain-bodied plain-bodied Plain-breasted Hawk Plain-carbon steel Plain-carbon steel plain-clothes plain-cut joint Plain-dealing Plain-Error Rule Plain-hearted plain-Jane

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