Callable interest rate swap
A swap in which the fixed-rate payer has the right to terminate the swap after a certain time. Callable swaps are often executed in conjunction with callable debt issues, where an issuer is more concerned with the cost of debt than the maturity. In puttable swaps, the fixed-rate receiver has the right to terminate the swap. Callable and puttable swaps are also known as cancellable interest rate swaps.