Basis Rate Swap

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Definition: Basis Rate Swap

Basis Rate Swap
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Full Definition of Basis Rate Swap

Trade of interest rates from different money markets to eliminate interest-rate risk. For example, if a financial institution lends money with a variable rate based on the London Interbank Offer (LIBOR) rate, and borrowers receive the Treasury Bill interest rate, the difference between the interest rates is a risk. If the lender swaps interest rates with the borrower in a Basis Rate Swap, interest-rate risk is removed.

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https://payrollheaven.com/define/basis-rate-swap/
Modern Language Association (MLA):
Basis Rate Swap. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/basis-rate-swap/.
Chicago Manual of Style (CMS):
Basis Rate Swap. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/basis-rate-swap/ (accessed: April 19, 2024).
American Psychological Association (APA):
Basis Rate Swap. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/basis-rate-swap/

Definition Sources

Definitions for Basis Rate Swap are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.