View source for Finance:Amortising swap

An '''Amortising swap''' <ref name="Fabozzi">Frank J. Fabozzi, 2018. [https://www.wiley.com/en-us/The+Handbook+of+Financial+Instruments-p-9781119522966 ''The Handbook of Financial Instruments''], [[Company:Wiley (publisher)|Wiley]]  {{ISBN|978-1-119-52296-6}}</ref> is usually an [[Finance:Interest rate swap|interest rate swap]] in which the [[Finance:Notional amount|notional principal]] for the interest payments declines (i.e. is [[Finance:Amortization (accounting)|paid down]]) during the life of the swap, perhaps at a rate tied to the prepayment of a mortgage or to an interest rate benchmark such as the London Interbank Offered Rate (Libor). 
It is the opposite of the [[Finance:Accreting swap|accreting swap]].
If the swap allows for uncertain contingent ups and downs in the notional principal, it is called a "roller-coaster swap".
==References==
'''Sources'''
{{reflist}}
'''Further reading'''
* Mark Rubinstein ''Rubinstein on Derivatives. Futures, Options and Dynamic Strategies'' 1999 {{ISBN|1-899332-53-7}}

[[Category:Interest rates]]
[[Category:Swaps (finance)]]

{{Derivatives market}}

{{Sourceattribution|Amortising swap}}