Trade of interest rates from different money markets to eliminate interest-rate risk. For example, if a financial institution lends money with a variable rate based on the London Interbank Offer (LIBOR) rate, and borrowers receive the Treasury Bill interest rate, the difference between the interest rates is a risk. If the lender swaps interest rates with the borrower in a Basis Rate Swap, interest-rate risk is removed.

Related information about basis rate swap:

1. Basis Rate Swap Definition | Investopedia
   A type of swap in which two parties swap variable interest rates based on different money markets. This is usually done to limit interest-rate risk that a company ...
    
2. Basis Rate Swap - Financial Dictionary - The Free Dictionary
   An interest rate swap where both legs are variable interest rates calculated over the same notional value. For example, one interest rate may be LIBOR + 0.50%, ...
    
3. What is basis rate swap? definition and meaning
   Definition of basis rate swap: Trade of interest rates from different money markets to ... If the lender swaps interest rates with the borrower in a Basis Rate Swap, ...
    
4. Basis swap: Definition from Answers.com
   By entering into a basis rate swap, where they exchange the T-Bill rate for the LIBOR rate, they eliminate this interest-rate risk. Related Links: Tap into a world of ...
    
5. Definitions - Interest Rate Swaps - Interest Rate, LIBOR Rates, Base ...
   Dec 30, 1998 ... By entering into a basis rate swap, where they exchange the Treasury Bill rate for the LIBOR rate, they eliminate this interest-rate risk.
    
6. Stand-by Basis Rate Swap Confirmation - Fixed - Virgin Money
   Jul 9, 2012 ... Execution Version. Stand-by Basis Rate Swap Confirmation - Fixed. From: Gosforth Funding 2012-1 plc. Fifih Floor. 100 Wood Street. London ...
    
7. Initial Basis Rate Swap Confirmation - Tracker - Virgin Money
   EXECUTION COPY. Initial Basis Rate Swap Confirmation - Tracker. From: Gosforth Funding 2()l l-l plc. Fifth Floor l00 Wood Street. London ECZV VEX. Attention: ...
    
8. EXECUTION COPY Initial Basis Rate Swap ... - Virgin Money
   Initial Basis Rate Swap Confirmation - Standard Variable Rate. From: Gosforth Funding 201 l-l ple. Fifth Floor. 100 Wood Street. London EC2V 7EX. Attention: ...