asset for asset swap


A situation whereby creditors will exchange the debt from one borrower who is defaulting for the debt of another borrower who is defaulting. Usually in this case, debt will be exchanged for new debt that reduces the amount that is owed, but will increase the interest that will be paid. Debt could also be swapped for additional equity.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
asset financing asset impairment