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index amortizing swap

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Financial Dictionary

Index Amortizing Swap

A swap whereby the notional principal amount of the agreement is amortized according to the movement of an underlying rate.

Investopedia Commentary

Index amortizing swaps could be based on LIBOR or mortgage interest rates.

Also known as "indexed principal swap."

See also: Index Amortizing Note -IAN, Interest Rate Swap, LIBOR, Notional Principal Amount, Swap

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