meaning of ANNUAL INFLATION SWAP

ANNUAL INFLATION SWAP meaning in Law Dictionary

n OVERTHECOUNTER SWAP relating to the trade of drifting (actual) and fixed RISING PRICES after each annual evaluation duration. Annual rising prices swaps, which generally speaking reference an inflation index of customer prices, tend to be structured as longterm deals, with maturities expanding to 10+ years. See in addition INFLATION SWAP, ZERO COUPON INFLATION SWAP.