What is VARIABLE PRINCIPAL SWAP?

A swap with principal rates that change depending on the market. Payments also vary depending on the market. AKA rollercoaster. Refer to accreting, amoritizing, index principal, mortgage, and reverse index swaps.

More On This Topic



Link to This Definition
Did you find this definition of VARIABLE 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