An interest rate swap is a deal between two investors. One has his money in a product paying a fixed rate of interest, such as a government bond; the other in a variable rate instrument that pays out ...

Interest rate swaps provide counter-parties with the opportunity to exchange fixed-rate and floating-rate cash flows. Large financial institutions, such as banks, commodity market participants and ...

LIBOR flat was the base LIBOR rate with no added spread. Banks used LIBOR as a reference for setting various loan and deposit rates. LIBOR flat was central in interbank lending and interest rate swap ...