What are SWAT rates?

SWAT rates refer to the interest rates applied in a SWAT (Swap Weighted Average Tenor) transaction, which is a type of financial derivative used to manage interest rate risk. These rates are typically calculated as a weighted average of swap rates over a specific tenor or set of maturities. SWAT rates are commonly used by financial institutions and corporate treasuries to hedge against fluctuations in interest rates, manage liabilities, or optimize funding costs. Understanding SWAT rates is important for professionals involved in treasury management, risk management, and financial planning.