Lender

Subtype of Direction

The swap position amounts to lending the target currency for the time period from the start of the swap until its final maturity.
More specifically and assuming that both initial and final exchanges of notional apply, a spot exchange takes place at swap's inception, whereby the swap holder receives (borrows) the source currency and delivers (lends) the target.
At swap's maturity the notional amounts are returned to their original owners, whereby the swap holder returns the source currency and receives back the target.
In the times between, the swap holder will receive the stipulated target coupon and pay the source coupon.