Swaption

Word SWAPTION
Character 8
Hyphenation N/A
Pronunciations N/A

Definitions and meanings of "Swaption"

What do we mean by swaption?

An option giving the buyer the right to enter into a swap agreement by a specified date. noun

An instrument granting the owner an option to enter an interest rate swap. noun

An instrument granting the owner an option to enter an interest rate swap.

More generally, an option on any type of swap.

Synonyms and Antonyms for Swaption

  • Synonyms for swaption
  • Swaption synonyms not found!!!
  • Antonyms for swaption
  • Swaption antonyms not found!

The word "swaption" in example sentences

A swaption is a type of option that grants its owner the right, but not the obligation, to enter a swap agreement, typically involving interest rates. ❋ Atsuko Fukase (2011)

Capital index measuring expectations for rate volatility, based on so-called swaption prices, fell 5.8 percent since Dec. 15. ❋ Unknown (2011)

In a letter to the turnpike received Wednesday, UBS Securities said a turnpike insurer's bond rating has fallen so much that UBS can terminate a so-called swaption agreement made in 2001 and claim money it would have made over the remainder in the deal. ❋ Unknown (2009)

In a letter to the Turnpike received Wednesday, UBS Securities said a Turnpike insurer's bond rating has fallen so much that UBS can terminate a so-called swaption agreement made in ❋ Unknown (2009)

Unlike the other swap deals, this deal, called a "swaption," is on a fixed-rate bond.

The House version also eliminates a Senate ban on "swaption" investments at all stage agencies, which [House transportation chair Joseph] Wagner said may have been too sweeping. ❋ Unknown (2009)

NOTE: This deal, which was placed on top of the 2003 "swaption," is called a private

So, the suit invents a derivative to hedge the volatility-say a "swaption," which is an option on the interest rate swap. ❋ Unknown (2009)

Swaps have the werewolf DNA that allow one type of financial security to be mutated into another directly - or have the option to swap nature by means of a "swaption", combining an option and a swap. ❋ Unknown (2008)

But if you say, 'How do you design a "swaption"?' that goes beyond where I am today. " ❋ Unknown (2008)

The cost of the outstanding swaption portfolio totaled $53 million at the time of purchase, and at quarter end, had a market value of $36.4 million.

To illustrate this point further, let's turn to slide 11, where we show the market value profile of our swaption portfolio over a wide range of interest rates.

The $50 million net loss associated with derivatives, hedged items, and financial instruments carried at fair value for the second quarter of 2011 reflected losses primarily associated with the effects of changes in interest rates and increased swaption volatilities.

Options were provided to counterparties under swaption agreements to extend swaps into 2013 on 36,500 Bbls of oil at a fixed price of $105.00 per Bbl and into 2014 on 365,000 MMBtu of gas at a fixed price of $5.40 per MMBtu.

During the quarter, the company had a net gain of $0.7 million, net of tax, related to swap terminations and a swaption expiration.

In the declining rate scenarios on the graph, you could see that the maximum loss of the swaption portfolio is $36 million, corresponding to its current market value.

Our swaption portfolio also increased materially over the quarter.

Or if you fee like, you don't need that protection or if you want to sell some mortgage assets because they're performing very well in that environment, then you could do that and pair off the swaption at a gain.

Like the untraded US rates liquidity index (USRLI), the CLX is constructed as a sum of the Sharpe ratio - deviations from the mean divided by volatility - of various market factors, such as equity volatilities, Treasury rates, swap spreads, corporate bond swaption-implied volatilities, and structured credit spreads. ❋ Risk.net (2010)

Cross Reference for Swaption

  • Swaption cross reference not found!

What does swaption mean?

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