Intressimääravahetuses

Intressimääravahetus, often translated as interest rate swap, is a financial derivative contract between two parties to exchange one stream of future interest payments for another, based on a specified principal amount. Typically, one party agrees to pay a fixed interest rate while the other agrees to pay a floating interest rate, or vice versa. The principal amount itself is usually not exchanged, but rather serves as the basis for calculating the interest payments.

The primary purpose of an interest rate swap is to manage interest rate risk. A company that has borrowed money at a floating rate but prefers the predictability of fixed payments might enter into a swap to exchange its floating rate payments for fixed rate payments. Conversely, a company with fixed rate debt might swap for floating rate payments if it anticipates falling interest rates. Another common use is to convert a liability from one interest rate basis to another, thereby achieving a desired funding cost.

Interest rate swaps can be customized to fit specific needs regarding payment dates, tenors, and the floating rate index used. They are widely traded over-the-counter (OTC), meaning they are customized agreements between two parties, although standardized contracts also exist. The market for interest rate swaps is one of the largest and most liquid derivative markets globally.