asset swap
Definition
An exchange of two assets. For example, one type of asset swap is the exchange of a fixed asset, such as a Treasury Bond with fixed and guaranteed payments, for a floating asset such as an index fund, which does not have a fixed or guaranteed return. Asset swaps are done most often in order to achieve a more favorable payment stream, and typically involve debt obligations.
 Cite this definition
Related Terms
interest rate swap, swap
Related Research Articles from the InvestorGuide.com University
Corporate Bonds
Thinking of buying a bond issued by a corporation? Learn the basics about corporate bonds as well as how to evaluate the yield, maturity, duration, rating, callability and convertibility.
Basic Bond Concepts
Read about the most important fundamental concepts of bonds, including par value, maturity, coupon, nominal and current yield, yield to maturity, and duration. We also explain what the various bond ratings mean.
Advanced Bond Concepts
Learn about callable and non-callable bonds, zero-coupon bonds, secured and unsecured bonds, tax-deferred bonds, put provisions, and other advanced bond concepts.
Featured Sponsor
|
|
