Constant Maturity Swap

The constant maturity swap is a form of interest rate swaps, in which the interest payment of a swap partner on a regular basis to a ( long-term ) reference rate ( the current 10 - year swap rate, for example ) adjusted. The interest payment of the other swap partner is based usually on a short-term interest rate (eg 3- month Euribor).

As with a normal interest rate swap that is a short-term interest rate against a longer-term is exchanged However, in contrast to the long-term interest rate over the term is not constant, but is adjusted periodically.

There would, however, be an "unfair " trade, is quoted in a normal yield curve of constant maturity swap at a premium to Euribor or Libor, for example, or as a discount to the tourlich adjusted market rate.

• Financial market activities
• Banking
• Finance
• Futures