Constant maturity swap (CMS) derivatives

A constant maturity swap (CMS) is a type of swap dealing in which two parties agree to pay a fixed sum of money, usually in the form of a bond or other security, with the understanding that the payment will not be made until a future date.

In order to participate in a CMS, an exporter must generally have an assumed maturity of six months or less.

Leave a Comment

Your email address will not be published.

Scroll to Top