Yield-Giveup Swap is a type of interest rate swap in which one party agrees to receive a fixed rate of interest while giving up the yield from a floating rate index, and the other party agrees to receive the yield from the floating rate index. The swap contract specifies a notional principal amount, a fixed interest rate, and the floating rate index. The yield-giveup swap is also known as an inverse floater.

The party that receives the fixed rate of interest is known as the fixed-rate payer or yield-giveup payer. The party that receives the yield from the floating rate index is known as the floating-rate payer or yield-receiver. The yield-giveup payer benefits from the fixed rate of interest, while giving up the yield from the floating rate index. The yield-receiver benefits from the yield from the floating rate index.

The yield-giveup swap is often used by investors who want to benefit from a low-interest rate environment. The yield-giveup payer can lock in a low fixed rate of interest, while giving up the yield from a floating rate index that is expected to remain low. The yield-receiver can benefit from the yield from the floating rate index, which is expected to remain low.

Yield-giveup swaps are often used by financial institutions to manage interest rate risk. The swap contract allows financial institutions to hedge against interest rate changes by locking in a fixed rate of interest, while giving up the yield from a floating rate index. Yield-giveup swaps are also used by investors who want to bet on interest rate changes, as the swap contract allows them to take a position in the yield from a floating rate index.