InvestorWords.com

debt swap


Definitions (2)

1. A series of transactions where debts are exchanged between two entities. For example, a corporation may swap commercial paper for a government's municipal bonds. These swaps can occur for a variety of reasons, but the main reason is for profit.

2. Conversion of old debt to either new debt or new equity. Debt swaps can be performed by a company for purposes of avoiding bankruptcy, reorganizing debts, or gaining a more favorable repayment schedule.


Related Videos




Search for another term


Related Terms

Browse 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