swap
Definition
Exchange of one type of asset, cash flow, investment, liability, or payment for another. Common types of swap include: (1) Currency swap: simultaneous buying and selling of a currency to convert debt principal from the lender's currency to the debtor's currency. (2) Debt swap: exchange of a loan (usually to a third world country) between banks. (3) Debt to equity swap: exchange of a foreign debt (usually to a Third World country) for a stake in the debtor country's national enterprises (such as power or water utilities). (4) Debt to debt swap: exchange of an existing liability into a new loan, usually with an extended payback period. (5) Interest rate swap: exchange of periodic interest payments between two parties (called counter parties) as means of exchanging future cash flows.
swap is in the Commodities & Precious Metals Trading, Currency Trading, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
swap appears in the definitions of the following terms:
notional principal,
repo,
forward swap,
amortizing swap,
parallel loan,
derivative security,
indexed-rate bond,
credit swap,
degree day swap,
repo rate
and
swap appears in these other terms:
hot swappable,
quality swap,
debt for environment swap,
debt for export swap,
commodity swap,
debt-equity swap,
catastrophe swap,
equity swap,
yield swap,
swaption
and
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