Intressitahojen

Intressitahojen, also known as interest rate swaps, are financial derivatives that allow two parties to exchange cash flows based on the difference between a fixed interest rate and a floating interest rate. This type of swap is commonly used by financial institutions, corporations, and governments to manage their interest rate risk. One party agrees to pay a fixed interest rate on a notional principal amount, while the other party pays a floating interest rate, typically linked to a benchmark rate such as LIBOR or SOFR. The difference between these two rates is exchanged between the parties, with the payments typically made semi-annually or annually. Interest rate swaps can be used for various purposes, including hedging against interest rate fluctuations, achieving a desired interest rate profile, or accessing cheaper funding. They are standardized contracts traded on financial markets, with the most common types being interest rate swaps, basis swaps, and cross-currency basis swaps. The valuation of interest rate swaps is based on the present value of the expected cash flows, taking into account the current interest rate environment and the creditworthiness of the counterparties.