[professormoriarty]

Hi again!

It just means that the terms of the swap are different to market terms, so that for one of the parties it has a positive value and for the other a negative value. This is balanced in some way, for example through a lump sum payment between the parties at inception, so in essence it’s a swap with a financing component

[professormoriarty]

Just to be clear, I mean a derivative that is off-market (has negative value) at inception

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