Forward starting swaps - Definition and Overview

A forward-starting swap is a forward security which lock in the rate today for an interest rate swap asset or liability to be created or sold in the future. company that plans to issue fixed rate at a future date can use a forward-starting swap to hedge (finance) the future issuance rate.

See also

• Derivative security

External links

• BMO Nesbitt Burns - Interest Rate Swaps (http://corporate.bmo.com/rm/intrderiv/interestswaps/default.asp)