What is INDEX PRINCIPAL SWAP?

An over the counter swap with floating interest. The principal is notational. This type of exhange is also called index amoritizing rate, accreting, amoritizing, reverse index principle, or a variable principle swap

More On This Topic



Link to This Definition
Did you find this definition of INDEX PRINCIPAL SWAP helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary