Constant Maturity Swap
Also found in: Medical, Encyclopedia, Wikipedia.
Constant Maturity Swap
An
interest rate swap where the
buyer is permitted to pick the
maturities of the
interest rates swapped. For example, the buyer may choose to receive the six month interest rate (calculated over some
notional amount) while paying a one-year rate. One buys a CMS when one believes he/she knows the direction of future rates.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive
The system is counterparty to one fixed payor swap and one
constant maturity swap, converting approximately 13% of total debt to synthetic fixed rates.
The annual coupon payments are linked to the number of calendar days qualifying dual conditions, under which USD 30Y
constant maturity swap (CMS) is equal to or greater than USD 2Y CMS, and USD 10Y CMS fixing ranges 0% to 6%.
Copyright © 2003-2025 Farlex, Inc
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.