From Longman Business Dictionaryinterest rate swapˈinterest rate ˌswapFINANCE an exchange between a borrower with one type of loan and a borrower with a different type of loan. Each borrower is looking for an advantage that the original loan did not have, for example that the loan is in a particular currency, has a particular interest rate, is for a particular period of time etcIt entered an interest rate swap transaction where it exchanged its fixed-rate liabilities for floating-rate payments. → swap
