Related Words

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

Sponsorship: The purchase of all or part of a television program by one advertiser.

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.

Swap: When you swap or exchange securities, you sell one security and buy a comparable one almost simultaneously. Swapping enables you to change the maturity or the quality of the holdings in your . . . 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.

Rate Anticipation Swaps: An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, given the investor's assumptions about future changes in interest rates.

Liability Swap: An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets.

Pure Yield Pickup Swap: Moving to higher yield-bonds.

Put Swaption: A financial instrument giving the buyer the right, or option, to enter into a swap as a floating-rate payer. The writer of the swaption therefore becomes the floating-rate receiver/fixed-rate payer.

Swap Assignment: An arrangement in which two entities lend to each other on different terms, e.g., in different currencies, and/or at different interest rates, fixed or floating.