Term of the Day for Tuesday, October 23, 2018

swap

Related Terms
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.

Use 'swap' in a Sentence

You can go to a swap meet if you have lots of a product you want to get rid of and see what offers you may get.
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I wanted to swap my lawnmower for an even better one that would make my lawn look amazing and perfect.
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The board of directors agreed to a fair exchange of assets, but most of them had doubts that the imminent currency swap would go smoothly and were prepared for the worst .
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