An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.

Converts the periodic fixed coupon of a specific bond to a Libor plus or minus a spread.Related Terms: Swap contract 

Describes the package of swap + investment where an interest rate swap or currency swap is used to change the interest rate exposure and/or currency risk exposure of an investment. Usually a combinati [..]

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 [..]

Rate of interest swaps undertaken to modify the characteristics of cash flow of assets of any firm so that liabilities and cash flows match.

An exchange of assets. In reference to the debt market, exchanging fixed rate debt to floating rate debt to change the cash flow of a firm's assets to provide a more favorable payment stream. For [..]

Asset swaps involve both the sale of an asset to a counterparty and an interest rate swap packaged into a single transaction. In the case of bonds, the asset will usually be a fixed rate instrument and the investor is seeking a floating rate return. The investment bank will therefore package the fixed rate bond with an interest rate swap, swapping [..]

An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.

When a fixed coupon bond is hedged using an interest rate swap. The combined position of the bond and the swap is called an asset swap. An asset swap provides the investor with a variable rate investm [..]