MACROECONOMIC SWAP
A derivative framed to aid companies with revenues that are closely correlated with business cycles in order to reduce the business-cycle risk. Also called macro swap, a variable stream of payments, based on a macroeconomic indicator, is switched for a fixed stream of payments. The swap occurs between an end user and a macro swap dealer. Most of the swaps, the underlying asset can be traded but this cannot be done in macroeconomic swaps.
This scheme was first introduced in the market in early 1990s.
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