Perhaps the most common fixed income derivative is the swap. A swap is a derivative contract through which two parties agree to exchange a series of future cash flows and those cash flows are predefined, but they're uncertain. Perhaps the most common example of a swap is a plain vanilla interest rate swap and this is a setup where you're simply swapping fixed interest payments for floating interest payments. The floating interest then typically being defined as a LIBOR interest.

You can also have interest rate swaps where you're swapping floating interest for another floating interest. So for instance, you're swapping three months LIBOR to six months LIBOR.

Cross-currency swaps is a swap where you're swapping floating interest in one currency against floating interest in another currency. For example, US dollar LIBOR versus euro LIBOR.

And then of course, we have the equity swap where you're swapping equity performance for a floating interest. Examples of this would of course be your total return swaps where you're swapping the return of an equity index to a floating interest rate payment, thereby creating a delta one product against that index.