Debt-Equity Swap: Debt equity swap is a transaction in which existing bonds (debt) are exchanged for newly issued stock (equity). For example, an individual can in essence cancel a portion of their debt and transfer the equivalent balance to equity. A debt-equity swap can help an individual that is in financial trouble by cancelling some of their outstanding debt. Debt management A form of dealing with debt where the debtor can pay their debts (including interest and penalty charges) in full - they just need a bit more time. The debtor will keep control of their assets and most importantly they will keep their home.

 

Related Words

Debt-Equity Swap: Debt equity swap is a transaction in which existing bonds (debt) are exchanged for newly issued stock (equity). For example, an individual can in essence cancel a portion of their debt and t . . . View Full Definition

Reverse A Swap: Reswap of bonds to gain the advantage of a yield spread or tax loss and restore a bond portfolio to its position before the original swap.

Sponsorship Swap: An agreement between email list owners, publishers or advertisers to sponsor each other's mailings or newsletters for free. See ad swap.

Substitution Swap: A method for hedging price risk that uses debt market instruments, such as interest rate futures, or that involves selling borrowed securities as the primary assets.