Constant Maturity Swap

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Definition: Constant Maturity Swap


Constant Maturity Swap


Full Definition of Constant Maturity Swap


CMS. A variation an interest rate swap in which the rate of one portion of the swap is fixed or set at a rate relative to LIBOR, while the other portion of the swap is reset periodically against the rate of a fixed maturity instrument, such as a Treasury. The duration of the swap is longer than the periods that the constant maturity is reset to, meaning that investors in a constant maturity swap are exposed to changes in the market over a longer period of time.


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March 28, 2024 https://payrollheaven.com/define/constant-maturity-swap/.
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Constant Maturity Swap. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/constant-maturity-swap/ (accessed: March 28, 2024).
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Constant Maturity Swap. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/constant-maturity-swap/

Definition Sources


Definitions for Constant Maturity 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.