derivatives

Swap Payment

A swap payment is the periodic cash amount exchanged under a swap contract, based on a stated notional amount and the comparison of two cash-flow legs on each payment date.

Example: In a standard interest rate swap, Party A pays fixed 2.25% on a $5 million notional while Party B pays a floating rate tied to SOFR; on each quarterly payment date, the swap payment is the net amount exchanged between the two legs.

💬 Comments


Loading comments…