Variants of basic interest rate and currency swaps
Discuss briefly some of the variants of the basic interest rate and currency swaps.
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Rather than the basic fixed-for-floating interest rate swap, there are as well zero-coupon-for-floating rate swaps where fixed rate payer makes only one zero-coupon payment at the time of maturity on notional value. There exist floating-for-floating rate swaps where each side is tied to the different floating rate index or a dissimilar frequency of the same index. Currency swaps is not required to be fixed-for-fixed; floating-for-floating and fixed-for-floating rate currency swaps are repeatedly arranged. Additionally, both currency and interest rate swaps can be non-amortizing as well as amortizing.
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