What is Accreting Swap?

Legal Definition
An OVERTHECOUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that increases on a preset schedule or through the triggering of a market event, generally a breach of a defined INTEREST RATE level. Accreting swaps typically have a LOCKOUT PERIOD during which increases are prohibited. See also AMORTIZING SWAP, INDEX PRINCIPAL SWAP,REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPALSWAP.