What are airbag swaps?

Airbag swaps are interest rate swaps in which the notional value adjusts according to fluctuations in interest rates. Airbag swaps benefit companies looking to hedge investments susceptible to interest rate fluctuations, and they can generate more significant gains than vanilla swaps.

What is a swap in banking?

Uses. A swap in simple terms can be explained as a transaction to exchange one thing for another or ‘barter’. In financial markets the two parties to a swap transaction contract to exchange cash flows. A swap is a custom tailored bilateral agreement in which cash flows are determined by applying a prearranged formula on a notional principal.

What is pancakeswap?

What is PancakeSwap? PancakeSwap is a decentralized exchange built on the BNB Chain (previously BSC and Binance Chain) instead of Ethereum. It enables its users to swap BEP-20 standard tokens easily.

What are the different types of swaps?

Principal + Interest Swap – Covers both Principal and Coupon flows, ii. Principal Only Swap (POS) – Covers only Principal amount, and iii. Coupon (Interest) Only Swap – Covers only Coupon flows. 3. Basis Swaps: