Bermuda Swaption

It may sound like an annoying dance craze about the sweep the nation, a la the Twist or the Macarena. But in reality, a Bermuda swaption is a position in the option market.

A Bermuda option is an option that has a set schedule of possible exercise dates (See: Bermuda Option). A swaption is an option on an interest rate swap (the term coming from smooshing together of the words "swap" and "option"). The Bermuda Swaption offers more flexibility than a normal swaption, which just has a single expiration date.

(We have to admit, it feels a little ridiculous continually using the word "swaption." It's like if you worked at a Skittles factory and had to walk around all day saying the word "Skittles" in very serious contexts all the time, like "there's some safety concerns about the green Skittles mixer" or "let's brainstorm ways to accelerate gross margin growth of Brightside Skittles." Just hard to say with a straight face.)