The notional principal in an amortizing swap may decline at the same rate as the underlying or at a different rate which is based on the market interest rate of a benchmark like mortgage interest rates or the London Interbank Offered Rate. The opposite of an amortizing swap is an accreting principal swap - its notional principal increases over the life of the swap. In most swaps, the amount of notional principal remains the same over the life of the swap.
Investment dictionary. Academic. 2012.
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amortizing swap — An interest rate swap with a declining notional principal. American Banker Glossary … Financial and business terms
index amortizing swap — ( IAS) A type of amortizing interest rate swap in which the notional amount declines or amortizes based upon a specific index such as a mortgage prepayment speed. American Banker Glossary … Financial and business terms
Index Amortizing Swap — A swap whereby the notional principal amount of the agreement is amortized according to the movement of an underlying rate. Also known as indexed principal swap. Index amortizing swaps could be based on LIBOR or mortgage interest rates … Investment dictionary
Amortizing interest rate swap — Swap in which the principal or national amount rises (falls) as interest rates rise ( decline). The New York Times Financial Glossary … Financial and business terms
amortizing interest rate swap — swap in which the principal or notional principal amount declines over time. Bloomberg Financial Dictionary … Financial and business terms
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IAS — index amortizing swap (IAS) A type of amortizing interest rate swap in which the notional amount declines or amortizes based upon a specific index such as a mortgage prepayment speed. American Banker Glossary * * * See International Accounting … Financial and business terms
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