Definitions
from The American Heritage® Dictionary of the English Language, 5th Edition.
- noun An option giving the buyer the right to enter into a swap agreement by a specified date.
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun finance An
instrument granting the owner anoption to enter aninterest rate swap .
Etymologies
from The American Heritage® Dictionary of the English Language, 4th Edition
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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A swaption is a type of option that grants its owner the right, but not the obligation, to enter a swap agreement, typically involving interest rates.
Japan Partnership Creates Losses for Morgan Stanley Peter Stein 2011
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A swaption is a type of option that grants its owner the right, but not the obligation, to enter a swap agreement, typically involving interest rates.
Japan Joint Venture Cleans House After Loss Atsuko Fukase 2011
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Capital index measuring expectations for rate volatility, based on so-called swaption prices, fell 5.8 percent since Dec. 15.
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In a letter to the turnpike received Wednesday, UBS Securities said a turnpike insurer's bond rating has fallen so much that UBS can terminate a so-called swaption agreement made in 2001 and claim money it would have made over the remainder in the deal.
Nashuatelegraph.com local, state, business and sports news 2009
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In a letter to the Turnpike received Wednesday, UBS Securities said a Turnpike insurer's bond rating has fallen so much that UBS can terminate a so-called swaption agreement made in
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NOTE: This deal, which was placed on top of the 2003 "swaption," is called a private
unknown title 2009
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Unlike the other swap deals, this deal, called a "swaption," is on a fixed-rate bond.
unknown title 2009
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The House version also eliminates a Senate ban on "swaption" investments at all stage agencies, which [House transportation chair Joseph] Wagner said may have been too sweeping.
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So, the suit invents a derivative to hedge the volatility-say a "swaption," which is an option on the interest rate swap.
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Swaps have the werewolf DNA that allow one type of financial security to be mutated into another directly - or have the option to swap nature by means of a "swaption", combining an option and a swap.
Anarkismo.net 2008
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