swap arrangement — / swɒp əˌreɪndʒmənt/ noun an arrangement between central banks to allow each other credit in their respective currencies so as to make currency transactions easier … Dictionary of banking and finance
swap agreement — (53B) The term swap agreement (A) means (i) any agreement, including the terms and conditions incorporated by reference in such agreement, which is (I) an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap … Glossary of Bankruptcy
swap line — noun (economics) A lending arrangement between central banks • • • Main Entry: ↑swap * * * swap line, a reciprocal credit arrangement between banks of different countries: »the Bank of England s swap line with the Federal Reserve … Useful english dictionary
swap — A contract to buy and sell currencies with spot ( cash and carry) or forward contracts. The contract provides for the buying and selling to occur at different times; thus, each party acquires a currency it needs for a predetermined period of time … Financial and business terms
Swap — An arrangement whereby two companies lend to each other on different terms, e.g. in different currencies, and/or at different interest rates, fixed or floating. The New York Times Financial Glossary * * * ▪ I. swap swap 1 [swɒp ǁ swɑːp] also swop … Financial and business terms
Swap Network — A worldwide network of central banks that establish a reciprocal credit line relationship to temporarily swap currencies. The purpose of the swap is to give each bank the ability to simultaneously exchange a fixed amount of one another s… … Investment dictionary
Swap Transferring Risk With Participating Element - STRIPE — A specific type of hedging technique. STRIPEs combine interest rate swaps and interest rate caps in order to protect the borrower from changes in interest rates. Under this arrangement, the balance of a loan is split between a fixed rate and a… … Investment dictionary
Bond Market Association (BMA) Swap — A type of swap arrangement in which two parties agree to exchange interest rates on debt obligations, where the floating rate is based on the bond market association s swap index. One of the parties involved will swap a fixed interest rate for a… … Investment dictionary
Replacement Swap — A substitute for a swap arrangement that is terminated before it matures. A swap may be ended early if there is a termination event or a default. If a swap is terminated early, both parties will cease to make the agreed upon payments and the… … Investment dictionary
Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity … Wikipedia
Fixed-For-Floating Swap — An advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate. To understand how each party would benefit from this type of arrangement, consider a situation where… … Investment dictionary
