bond swap investment & finance definition
The act of liquidating a current bond position while simultaneously buying a replacement issue that has similar attributes but increases the chance for a higher return.
Bond Swapping
Techniques to lower your taxes and improve the quality of your portfolio
What is a Bond Swap?
Bond swap
When an investor sells one bond holding and simultaneously purchases a different bond issue in its place.
Bond Swaps
A bond swap occurs when an investor sells one bond and uses the proceeds to purchase another bond, often at the same price. Investors engage in bond swaps for a variety of reasons.
bond swaps - a municipal bond investment strategy that lets you take a tax loss and adjust your bond portfolio for credit quality and maturities to meet market considerations and your personal needs.
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.
Bond swap
In a bond swap, you buy one bond and sell another at the same time. For example, you might sell one bond at a loss at year's end to get a tax write-off while buying another to keep the same portion of your portfolio allocated to bonds.
is a bond swapping wherein traders take advantage of temporary aberrations in yield spread differentials between bonds of the same class, but with different ratings or between bonds of different classes.
MONETIZING DEBT
MONEY MARKET ...
pickup The value gained in a bond swap for which the bond purchased has a higher yield than the bond sold. pickup bond A type of callable bond that has a high coupon rate and whose callable date...
A counterparty in a junk bond swap receives the total rate of return on a portfolio of junk bonds and pay LIBOR.
A bank loan swap might pay the total rate of return on a risky bank loan and receive LIBOR.
 See also: Investment, Securities, Interest, Market, Issue
|
