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ACCRETING SWAP Definition & Legal Meaning

Definition & Citations:

An OVERTHECOUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that increases on a preset schedule or through the triggering of a market event, generally a breach of a defined INTEREST RATE level. Accreting swaps typically have a LOCKOUT PERIOD during which increases are prohibited. See also AMORTIZING SWAP, INDEX PRINCIPAL SWAP,REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPALSWAP.


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