The action of using inflation derivatives to transfer inflation risk from one party to another. Inflation swaps are used to offset the potential for high levels of inflation. They involve one party's assets linked to a price index, while the other party's assets are linked to a fixed or floating cash flow.
Related information about inflation swap:
- Inflation swap - Wikipedia, the free encyclopedia
An inflation swap is the linear form of an inflation derivative, an over-the-counter and exchange-traded derivatives that is used to transfer inflation risk from one ...
- Inflation Swap Definition | Investopedia
A derivative used to transfer inflation risk from one party to another through an exchange of cash flows. In an inflation swap, one party pays a fixed rate on a ...
- Bond crash/course: Inflation swaps « self-evident
Jul 8, 2009 ... Meet the zero-coupon inflation swap. The idea is very simple. You and I enter into a contract where, after N years, I will pay you “inflation” and ...
- SuperDerivatives - Glossary - Inflation swap
An inflation swap is an interest rate swap whereby the floating leg of the swap is set by reference to an inflation index rather than by reference to a short-term ...
- ISDA Bookstore - ISDA Inflation Derivatives Definitions
Includes Introduction, Standard Paragraphs, and Closing for a Letter Agreement Confirming a Transaction and accompanying Inflation Swap Confirmation.
- Understanding and Using Inflation Swaps - QFinance
This checklist explains what an inflation swap is and why it is used. Definition. An inflation swap involves the use of inflation derivatives (or inflation-indexed ...
- Inflation Swaps - Federal Reserve Bank of Cleveland
Dec 8, 2010 ... In an inflation swap, one side makes a variable payment that is based on the realized inflation rate, and the other makes a fixed payment.
- DerivActiv.com - Inflation Linked Swaps
The most basic inflation swap is a zero coupon inflation swap. ... In a zero coupon inflation swap, the inflation receiver pays a fixed rate and receives from the ...