What is formula method?

What is formula method? What Is the Formula Method? The formula method is used to calculate termination payments on a prematurely-ended swap agreement, whereby the terminating party compensates the losses borne by the non-terminating party due to the early termination (i.e., before it matures).

What Is the Formula Method? The formula method is used to calculate termination payments on a prematurely-ended swap agreement, whereby the terminating party compensates the losses borne by the non-terminating party due to the early termination (i.e., before it matures).