There are several reasons why people use a bond swap: to seek tax benefits, to change investment objectives, to upgrade a portfolio's credit quality or to speculate on the performance of a particular bond.
Investment dictionary. Academic. 2012.
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bond swap — The simultaneous, or nearly simultaneous, purchase of one debt security with the proceeds from the sale of another debt security. The swap is done after the investor has conducted an analysis showing that the debt security being purchased has… … Financial and business terms
bond swap — Fin an exchange of some bonds for others, usually to gain tax advantage or to diversify a portfolio … The ultimate business dictionary
Debt For Bond Swap — A debt swap involving the exchange of a new bond issue for similar outstanding debt or vice versa. Debt for bond swap transactions are usually executed to take advantage of an interest rate change and/or for tax write off purposes. When interest… … Investment dictionary
Debt Bond Swap — ⇡ Debt Conversion Programm … Lexikon der Economics
swap — Fin an exchange of credits or liabilities. See also asset swap, bond swap, interest rate swap … The ultimate business dictionary
swap di obbligazione — Eng. bond swap Vendita e riacquisto simultaneo di due obbligazioni diverse per scadenza, per rating, per rendimento o cedola … Glossario di economia e finanza
Bond insurance — (also known as financial guaranty insurance ) is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or… … Wikipedia
Swap rate — Swap rates are the borrowing rates between financial institutions, usually with credit ratings of A/AA equivalent. Swap rates are calculated using the fixed rate leg of interest rate swaps. Swap rates form the basis of the swap curve (also known… … Wikipedia
swap — A contract to buy and sell currencies with spot ( cash and carry) or forward contracts. The contract provides for the buying and selling to occur at different times; thus, each party acquires a currency it needs for a predetermined period of time … Financial and business terms
Bond Market Association (BMA) Swap — A type of swap arrangement in which two parties agree to exchange interest rates on debt obligations, where the floating rate is based on the bond market association s swap index. One of the parties involved will swap a fixed interest rate for a… … Investment dictionary