A trade between two parties of a fixed interest rate with a floating interest rate where there is an increase in the notional principal as the result of an increase in the floating interest rate causing the payments of both interest rates to become larger
More On This Topic
Link to This Definition
Did you find this definition of REVERSE 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