What does Extendable Swap mean?
An option that allows the holder to extend the life of the swap, on specified dates. In an extendible swap, the provider has a right to extend the swap, at the end of the agreed period, for a further predetermined period.
Futures Knowledge Explains Extendable Swap
Some special types of swaps have the provisions to cancel or extend the swaps. A cancelable swap gives one party the right to cancel the swap on a specified day before the final maturity date. On the other hand an extendable swap gives an option to a party to extend the swap further on specified dates. For example, an interest rate extendable swap contains a feature that allows the fixed for floating party to extend the swap period.