meaning of accreting swap

accreting swap meaning in Law Dictionary

n OVERTHECOUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that increases on a preset schedule or through triggering of a market event, generally a breach of a defined RATE OF INTEREST degree. Accreting swaps routinely have a LOCKOUT DURATION during which increases are forbidden. See additionally AMORTIZING SWAP, INDEX MAIN SWAP,REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPALSWAP.

accreting swap meaning in Business Dictionary

Swap with a notional key amount that decreases eventually.