Okuzeka
Finance & Banking vocabulary · Interest & Exchange Rates

Overnight indexed swap

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, overnight indexed swap means: An interest rate swap exchanging a fixed rate for a rate based on compounded overnight rates.

In Turkish: gecelik faiz endeksli takas

How it is used

Abbreviated OIS; identify the overnight index and the calculation period.

Example sentences

  1. The desk priced an overnight indexed swap using the domestic overnight benchmark.

    The floating leg follows overnight rates over the period.

  2. The fixed leg of the overnight indexed swap paid annually.

    Payment frequency can differ from the frequency of the underlying index.

Common collocations

  • overnight indexed swap curve
  • OIS fixed rate
  • swapA contract in which two parties exchange cash flows or currencies for a period, such as fixed interest payments for floating ones.
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.

More terms: Interest & Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.