Many of the world's top companies use interest rate derivatives to control their cashflow.
Financial and business terms. 2012.
Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… … Wikipedia
Interest-Rate Derivative — A financial instrument based on an underlying financial security whose value is affected by changes in interest rates. Interest rate derivatives are hedges used by institutional investors such as banks to combat the changes in market interest… … Investment dictionary
Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… … Wikipedia
Interest Rate Call Option — An interest rate derivative in which the holder has the right to receive an interest payment based on a variable interest rate, and then subsequently pays an interest payment based on a fixed interest rate. If the option is exercised, the… … Investment dictionary
Interest rate cap and floor — Interest rate c An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for… … Wikipedia
interest rate swap — An agreement under which two parties agree to exchange or swap a series of payments corresponding to each other s interest payment obligations. See also swap. + interest rate swap USA A type of over the counter derivative (OTC derivative) under… … Law dictionary
Interest rate option — is a derivative financial instrument.The global market for exchange traded interest rate options is notionally valued by the Bank for International Settlements at $3,075,400 million in 2005. See also * Derivative (finance) … Wikipedia
Interest rate — Finance Financial markets Bond market … Wikipedia
Interest rate future — An Interest Rate Future is a futures contract with an interest bearing instrument as the underlying asset.Examples include Treasury bill futures, Treasury bond futures and Eurodollar futures.The global market for exchange traded interest rate… … Wikipedia
Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
