Swissy
Jargon for the Swiss Franc.
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Tag Archive for 'S Glossary'
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Swingline facility
Bank borrowing facility to provide finance while the firm replaces U.S. commercial paper with eurocommercial paper.
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Sweep account
Account in which the bank takes all of the excess available funds at the close of each business day and invests them for the firm.
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Swaption
Options on interest rate swaps. The buyer of a swaption has the right to enter into an interest rate swap agreement by some specified date in the ‘ future. The swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer. The writer of the swaption becomes the counterparty to the swap if the buyer exercises.
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Swap sale
Also called a swap assignment, a transaction that ends one counterparty’s role in an interest rate swap by substituting a new counterparty whose credit is acceptable to the other original counterparty.
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Swap reversal
An interest rate swap designed to end a counterparty’s role in another interest rate swap, accomplished by counterbalancing the original swap in maturity, reference rate, and notional amount.
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Swap rate
The difference between spot and forward rates expressed in points, e.g., $0.0001 per pound sterling.
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Swap buy-back
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.
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Swap
An arrangement whereby two companies lend to each other on different terms, e.g. in different currencies, and or at different interest rates, fixed or floating.
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Sustainable growth rate
Maximum rate of growth a firm can sustain without increasing financial leverage.
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