COLLAR SWAP
A collar on the floating-rate leg of an interest rate swap. The transaction is zero cost – the purchase of the cap is financed by the sale of the floor.
The collar constrains both the upside and the downside of a swap.
A collar on the floating-rate leg of an interest rate swap. The transaction is zero cost – the purchase of the cap is financed by the sale of the floor.
The collar constrains both the upside and the downside of a swap.