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swaption

/ˈswɒpʃən/ /ˈswɑːpʃən/

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

Examples :

"The company bought a swaption to protect itself against rising interest rates on its loan, giving it the right, but not the obligation, to enter into an interest rate swap at a later date. "
business finance

Related Words

Illustration obligation

obligation noun

/ɑb.ləˈɡeɪ.ʃən/

The act of binding oneself by a social, legal, or moral tie to someone.

"My obligation to my family means I need to visit them regularly. "

Illustration instrument

instrument noun

/ˈɪnstɹəmənt/

A device used to produce music.

"The violinist was a master of her instrument."

Illustration payments

payments noun

/ˈpeɪmənts/

The act of paying.

"My monthly car payments are due on the 15th of each month. "

Illustration purchased

purchased verb

/ˈpɜːtʃəst/ /ˈpɝtʃəst/

To buy, obtain by payment of a price in money or its equivalent.

"to purchase land, to purchase a house"

Illustration mortgage

mortgage noun

/ˈmɔː.ɡɪdʒ/ /ˈmɔɹ.ɡɪdʒ/

A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property, such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

"To buy a house, John took out a mortgage. "

Illustration against

against preposition

/əˈɡeɪnst/ /əˈɡɛ(ɪ)nst/ /əˈɡɛnst/

In a contrary direction to.

"It is hard work to swim against the current."

Illustration different

different noun

/ˈdɪf.(ə)ɹ.ənt/

The different ideal.

"My family has a different ideal for my future than I do. "

Illustration protect

protect verb

/pɹəˈtɛkt/

To keep safe; to defend; to guard; to prevent harm coming to.

"Condoms are designed to protect against sexually-transmitted diseases."

Illustration granting

granting verb

/ˈɡɹæntɪŋ/ /ˈɡɹɑːntɪŋ/

(ditransitive) to give (permission or wish)

"He was granted permission to attend the meeting."

Illustration interest

interest noun

/ˈɪntəɹɪst/ /ˈɪntəɹst/

The price paid for obtaining, or price received for providing, money or goods in a credit transaction, calculated as a fraction of the amount or value of what was borrowed.

"Our bank offers borrowers an annual interest of 5%."

Illustration company

company noun

/ˈkʌmp(ə)ni/ /ˈkʌmpəni/

A team; a group of people who work together professionally.

"The school's student council is a company of dedicated students who organize events. "

Illustration generally

generally adverb

/d͡ʒɛn.əɹ.ə.li/

Popularly or widely.

"It is generally known that the Earth is round."