ACCRETING SWAP
\ɐkɹˈiːtɪŋ swˈɒp], \ɐkɹˈiːtɪŋ swˈɒp], \ɐ_k_ɹ_ˈiː_t_ɪ_ŋ s_w_ˈɒ_p]\
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An OVERTHECOUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that increases on a preset schedule or through the triggering of a market event, generally a breach of a defined INTEREST RATE level. Accreting swaps typically have a LOCKOUT PERIOD during which increases are prohibited. See also AMORTIZING SWAP, INDEX PRINCIPAL SWAP,REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPALSWAP.
By Henry Campbell Black
Word of the day
Snake's-head
- Guinea-hen flower; -- so called in England because its spotted petals resemble the scales of a snake's head.