What is a swap based on?

Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument can be almost anything. Usually, the principal does not change hands. Each cash flow comprises one leg of the swap.

What is a week in swaps?

The "week" begins on the business day immediately following the date referenced in A through the week ending date. Refers to the total value of swaps which have settled during the week, but have not yet matured. Annualized interest rate of the transaction. Only includes terms for transactions referred to in "C".

What is a total return swap?

In a total return swap, the total return from an asset is exchanged for a fixed interest rate. This gives the party paying the fixed-rate exposure to the underlying asset — a stock or an index. For example, an investor could pay a fixed rate to one party in return for the capital appreciation plus dividend payments of a pool of stocks.

What are the different types of swaps?

The most common kind of swap is an interest rate swap. Swaps do not trade on exchanges, and retail investors do not generally engage in swaps. Rather, swaps are over-the-counter (OTC) contracts primarily between businesses or financial institutions that are customized to the needs of both parties.