Swap

Swap Transferring Risk With Participating Element (STRIPE) hedging technique combining an interest rate swap and an interest rate cap .

Swap A swap is an agreement to exchange a series of variable cash flows for a fixed amount of cash flows in the future according to a prearranged formula.

swap rate Definition 1 The difference, whether positive or negative, between the forward exchange rate and the spot rate for a given currency, usually expressed in points. Definition 2 ...

A swap is an agreement between two counterparties to exchange two streams of cash flows-the parties "swap" the cash flow streams. Those cash flow streams can be defined in almost any manner.

Debt Equity Swap - An exchange for a specified amount of equity, or stock certificate is a debt equity swap. The monetary value determined is by the current market rates, but management has the option to offer a higher exchange.

Swap for which the amount of notional principal decreases during its life. Copy and paste this HTML in your website to link to this page ...

A swap that involves the exchange of principal and interest in one currency for the same in another currency. Definition 3.

Commodity Swap A swap where exchanged cash flows are dependent on the price of an underlying commodity. This is usually used to hedge against the price of a commodity.

Swap An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate.

Swap Financial contract in which two parties agree to exchange net streams of payments over a specified period.

Swap: An exchange of the basis of obligations to repay principal, interest, or currency. For interest-rate swaps (floating to fixed), the underlying principal may not be exchanged. Sweep: ...

swap arrangements Short-term reciprocal lines of credit between the Federal Reserve and 14 foreign central banks as well as the Bank for International Settlements.

Swap: A swap is a contract whereby two counterparties agree to a periodic exchange of cash flows for a given period of time based of a specified notional amount of principal.

Swap (transactions) A kind of financial transaction which has many variations, usually highly complex. They generally involve a simultaneous exchange of assets (the swap) by counterparties for other different assets of comparable value.

Swap Network The swap network is a series of bilateral arrangements between the Federal Reserve and fourteen foreign central banks and the Bank for International Settlements providing standby reciprocal facilities for obtaining foreign currencies.

Swap - Generally, an exchange of payments between two parties (sometimes called: counterparties), directly or through an intermediary: currency, interest rate or stock. T ...

Swap contracts are used to hedge entire price changes (symmetrically) related to an identified hedged risk, such as interest rate or foreign currency risk, since both counter parties gain or lose equally. RISK CHARACTERISTICS OF DERIVATIVES ...

Swap lié à des crédits à l'exportation: La différence, entre les taux d'intérêt du marché d'une monnaie déterminée et les taux d'intérêt minimum prescrits dans les dispositions de l'OCDE pour les crédits à l'exportation officiellement supportés (le ...

Swap reversal An designed to end a counterparty's role in another rate swap, accomplished by counterbalancing the original swap in maturity, reference rate, and notional amount.

Swap An interest rate, currency or equity exchange transaction involving two parties. In the case of an interest rate swap, one party is obliged to pay a fixed interest rate to the other party in return for a floating interest rate.

Swap In general, the exchange of one asset or liability for a similar asset or liability for the purpose of lengthening or shortening maturities, or raising or lowering coupon rates, to maximize revenue or minimize financing costs.

Swap - Is a customized financial transaction between two or more counterparties. However, banks or brokerage firms often act as intermediaries or assume some of the risk of the total transaction as well.

Swap between two LIBOR rates of interest, e.g., yen LIBOR for dollar LIBOR Payments are in one currency. Diffusion process A conception of the way a stock's price changes that assumes that the price takes on all intermediate values.

Swap The sale of a block of bonds and the purchase of another block of similar market value. Swaps may be made to establish a tax loss, upgrade credit quality, extend or shorten maturity, etc.

Swap in which the principal or notional amount declines over time. Amount outstanding and in circulation ...

swap (1) The sale of one or more securities in order to purchase one or more different securities with the proceeds from the sale.

Swap 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. Sweat equity ...

Swap An arrangement between the central banks of two countries for standby credit to facilitate the exchange of each other’s currencies. T ...

Swap The exchange of one bond for another. Generally, the act of selling a bond to establish an income tax loss and replacing the bond with a new item of comparable value.

Swap When you swap or exchange securities, you sell one security and buy a comparable one almost simultaneously.

Swap An over the counter agreement between two counterparties to periodically exchange cash flows a predetermined dates where the among of the cash flows exchanged on each date depends on some predetermined notional principal outstanding and a ...

A swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but offers a higher yield. Personal Finance Headlines SEARCH: ...

A swap in which the cash flows exchanged are based on the total return on some stock market index and an interest rate (either a fixed rate or floating rate). Related: Interest rate swap. [ Previous Page ] Personal Finance Glossary ...

A swap is an agreement between two parties to exchange future cash flows. For example, in what is called a vanilla-interest-rate swap, one firm swaps its fixed coupon rate debt obligation for the floating rate obligations of another firm. Synergy ...

Tax swap Swapping two similar bonds to receive a tax benefit. Tax umbrella Tax loss carryforwards from previous business losses that form a tax shelter for profits earned in current and future years.

Tax swap Swapping two similar bonds to receive a tax benefit. Tax-timing option The option to sell an asset and claim a loss for tax purposes or not sell the asset and defer the capital gains tax.

- A swap is a contract by which two parties exchange the cashflow linked to a liability or an asset.

Tax swap: See Bond Swap. Technical analysis: Analysis of investments based on technical factors, primarily on charting. This is the practice of determining investment strategies based on chart patterns.

Debt swap A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap.

Bond Swap Strategy: A strategy that sells long-bonds and buys short-bonds during periods of rising interest rates. It also does the opposite during periods of falling interest rates. Bond Yield: ...

Bond swap In a bond swap, you buy one bond and sell another at the same time.

Bond Swap: Selling municipal bonds (usually at a loss) and using the proceeds to buy other municipal bonds, to establish a loss for tax purposes, to diversify a portfolio, to increase cash flow, or increase yield. Also known as tax swaps.

Bond swap The sale of one bond issue and purchase of another bond issue simultaneously. See: Swap; swap order.

Asset Swap: A package of a cash credit instrument and a corresponding swap that transforms the cash flows of an asset (typically a fixed rate bond or loan) into a floating interest rate instrument, typically indexed to LIBOR.

Price Swap Derivative - An obligation made by one company to secure the declining value of another company's assets through the commitment of shares.

Stock Swap Allowing an executive to deliver already-owned stock, instead of paying cash, to exercise a stock option. Stop-Loss Provision ...

Asset swap An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities. Asset turnover The ratio of net sales to total assets.

Circus swap A fixed rate currency swap against floating U.S. dollar L.I.B.O.R. payments. Claimant ...

Currency swap In a currency swap, the parties to the contract exchange the principal of two different currencies immediately, so that each party has the use of the different currency.

What are Swap Meets? What Are Some Different Kinds of Potatoes? What is Community Supported Agriculture?

Debt/Equity Swap. A transaction in which a corporation exchanges newly issued stock (equity) for already existing bonds (debt).

Interest Rate Swap An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount.

Interest-Rate Swap An agreement between two parties that wish to switch floating-rate loan payments for fixed-rate loan payments in the same or different currencies.

interest rate swap: An arrangement to swap a fixed loan rate for a floating loan rate, or vice versa. interest-sensitive stock: A stock whose operations and earnings are impacted by changes in interest rates.

Credit default swap Collateralised Debt Obligation Credit default option Total return swap ...

Pay-up The loss of cash resulting from a swap into higher-priced bonds or the need/willingness of a bank or other borrower to pay a higher rate of interest to get funds. Used in the context of general equities.

Debt-for-equity swap A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time. Debt instrument An asset requiring fixed dollar payments, such as a government or corporate bond.

Stock replacement strategy A strategy for enhancing a portfolio's return, employed when the futures contract is expensive based on its theoretical price, involving a swap between the futures, Treasury bills portfolio and a stock portfolio.

ISDA See: International Swap Dealers Association ISK The ISO 4217 currency code for the Icelandic Krona.

stock swap An acquisition in which the acquiring firm uses its own stock to pay for the acquired firm. stock symbol A ticker symbol denoting a particular stock. stock ticker See ticker.

See also: Market, Interest, Exchange, Price, Trade