A swap is signposted by an exchange of payment flows between two parties throughout a determined period.

For a cross currency interest rate swap, two parties exchange interest payments (in general fixed against variable interest) of differing currencies as well as the respective principals of the underlying transaction according to requirements. The idea behind is the usage of expenses advantages by using the credit standing of the respective business partner. As the partner has a better standing at the foreign financial market than the IDES AG, he receives better conditions which are partly passed on to the IDES AG and vice versa.