IRS TWD (vs 3M TAIBOR) 10Y mid

TAIBOR (Taipei Interbank Offered Rate) is the average interest rate at which major banks in Taiwan lend short-term unsecured funds to one another. The 3-month TAIBOR (3M TAIBOR) serves as a key benchmark for the cost of borrowing in New Taiwan Dollars (TWD) for a three-month period. Interest Rate Swap on TWD (TWD IRS vs 3M TAIBOR) — a derivative financial instrument whereby two parties agree to exchange interest rate payments calculated on a notional principal amount. Typically, one party agrees to make periodic payments at a predetermined fixed interest rate, and in return, receives payments from the other party linked to a floating rate—in this case, the 3M TAIBOR. This instrument allows market participants to manage interest rate risk (i.e., to hedge) or to speculate on future movements in Taiwanese dollar interest rates. The notional principal amount itself is not actually exchanged.