Browse Financial Instruments

Interest-Rate and Inflation Swaps

Interest-rate swap, overnight index swap, asset swap, HJM model, inflation swap, zero-coupon swap, and zero-coupon inflation swap terms.

Interest-Rate and Inflation Swaps is the financial-instruments landing page for swap mechanics, ISDA documentation, notional principal, interest-rate swaps, currency swaps, credit derivatives, total-return swaps, variance swaps, volatility swaps, and inflation swaps. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.

Use this page when a swap or rate-linked derivative changes cash-flow exchange, counterparty exposure, hedging, or valuation. Use the parent Swaps, Rates, and Credit Derivatives page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.

Use the table below to move from this landing page into the term page that best matches the instrument evidence.

Key Terms in This Branch

TermUse it for
Asset SwapAsset Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Heath-Jarrow-Morton (HJM) ModelHeath-Jarrow-Morton (HJM) Model is a swap or rate-derivative term used to place the narrower article in the right contract, payoff, settlement, and risk context.
Inflation SwapInflation Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Interest-Rate DerivativeInterest-Rate Derivative is a swap or rate-derivative term used to place the narrower article in the right contract, payoff, settlement, and risk context.
Interest Rate SwapInterest Rate Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Overnight Index Swap (OIS)Overnight Index Swap (OIS) helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Zero-Coupon Inflation Swap (ZCIS)Zero-Coupon Inflation Swap (ZCIS) helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Zero-Coupon SwapZero-Coupon Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.

Example in Use

An interest-rate swap can convert fixed-rate debt exposure into floating-rate exposure without refinancing the underlying loan.

What to Check

  • Counterparties, notional amount, fixed leg, floating leg, reference rate, payment dates, and maturity.
  • Collateral terms, ISDA documentation, clearing status, margin, termination events, and reporting records.
  • Credit, currency, equity, rate, inflation, variance, or total-return exposure being transferred.
  • Effect on hedge effectiveness, funding cost, duration, basis risk, counterparty credit risk, and mark-to-market value.

Common Mistakes

  • Confusing notional principal with the amount actually exchanged.
  • Ignoring collateral, clearing, termination rights, and counterparty risk.
  • Comparing swaps without matching reference rates, reset dates, payment frequency, and day-count conventions.

Rate & Inflation Swaps content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Asset Swap

An asset swap combines a bond position with a swap to transform fixed or credit-sensitive cash flows into floating-rate exposure.

Heath-Jarrow-Morton (HJM) Model

The Heath-Jarrow-Morton model describes forward-rate dynamics used to value interest-rate-sensitive securities and manage term-structure risk.

Inflation Swap

An inflation swap transfers inflation risk by exchanging fixed payments for payments linked to an inflation index.

Interest Rate Swap

An interest rate swap exchanges fixed-rate and floating-rate cash flows, usually to manage borrowing, asset, or yield-curve exposure.

Interest-Rate Derivative

An interest-rate derivative is a contract whose value depends on rates, yield curves, or rate indexes, often used for hedging or speculation.

Overnight Index Swap (OIS)

An overnight index swap exchanges a fixed rate for compounded overnight benchmark rates over the swap term.

Zero-Coupon Inflation Swap

A zero-coupon inflation swap exchanges a fixed inflation rate for realized inflation in a single settlement at maturity.

Zero-Coupon Swap

A zero-coupon swap concentrates one leg's payments into a lump-sum settlement instead of periodic swap cash flows.

Revised on Sunday, June 21, 2026