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.

Related Terms

interest rate swap -  More

asset-swap spread -  More

Z-spread -  More

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