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Topic: Swap (finance)

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In the News (Thu 20 Jun 19)

  Swap (finance) - ArticleWiki
Template:Financial markets In finance, a swap is a derivative in which two counterparties agree to exchange one stream of cash flows against another stream.
Swaps can be used to hedge certain risks such as interest rate risk, or to speculate on changes in the underlying prices.
Initially, the terms of a swap contract are such that the NPV of all future cash flows is equal to zero.
articlealley.co.uk /wiki/index.php/Swap_(finance)   (955 words)

  Swap (finance)   (Site not responding. Last check: )
A swap is an agreement between two counterparties to exchange something (one "leg" of the swap) for something else (the other "leg").
An equity swap is a customized, negotiated contract between the investor and a swap dealer that provides economic exposure to an underlying equity or equity related security, basket of securities, or index.
A swap may be used to initiate a new investment synthetically or to replace an existing physical equity position.
www.toolhost.com /Swap_%28finance%29.html   (901 words)

 What is an interest rate swap? interest rate swaps
Note however, that because a swap is a notional principal contract, no credit risk arises in respect of an amount of principal advanced by a lender to a borrower which would be the case with a loan.
In distinction to a forward contract, the periodic exchange of payment flows provided for under an interest rate swap does provide for a partial periodic settlement of the contract but it is important to appreciate that the net present value of the swap does not reduce to zero once a periodic exchange has taken place.
As a further variation, the company's fixed- to- floating interest rate swap could be an "arrears reset swap" in which -- unlike a conventional swap -- the swap rate is set at the end and not at the beginning of each period.
home.earthlink.net /~green/whatisan.htm   (3214 words)

 swap - definition of swap from YourDictionary.com
Two individuals can create a swap, or a swap may be made through a third party such as a brokerage firm or a bank.
Swaps are used to manage risk and often settlements occur in cash, not in delivery of the actual product or financial instruments.
An example of a currency swap is an agreement to sell $1 million of Japanese yen three months in the future at ¥116.50.
www.yourdictionary.com /swap   (492 words)

 CMS BondEdge-fixed income portfolio and credit risk analytics
On the swap’s inception date, the fixed rate represents the swap market’s consensus view of the “fair” rate to pay, the rate that equates, on a present value basis, the series of fixed payments to the series of floating rate payments through the life of the contract.
Thus, in a theoretical sense, on the day the swap is created the fixed-rate payer expects to pay, on a present value basis, the same amount he or she expects to receive from the floating rate payer over the life of the swap agreement, and the same is true for the floating-rate payer.
A significant percentage of total activity in the swap market is attributable to mortgage-related hedging –; as interest rates fall, the demand to receive the fixed rate in a swap increases from MBS investors who want to offset the contraction risk and negative convexity of holding MBS.
www.cmsbondedge.com /b2b/bb_interest_rate_swaps.html   (1079 words)

 Swap (finance)
Swaps are often used to hedge certain risks, for instance interest rate risk.
As each swap is a unique contract, the only way to get out of it is by either mutually agreeing to tear it up, or by reassigning the swap to a third party.
Initially, the terms of a swap contract are such that the NPV of all future cash flows are equal to zero.
wiki-shorts.freestat.pl /10-914-Swap_-28finance-29.html   (400 words)

 Affordable Housing Finance
Unlike traditional construction financing, this tool allows the borrower one point of contact for the entire financing process, eliminating duplication and removing competing interests that have long stretched out the financing process when multiple lenders and third parties are involved.
The forward-starting swap allows a borrower to have both a floating interest rate during the construction period and a synthetic fixed rate once the swap begins.
Forward-starting swaps work best for borrowers that understand the intricacies of a swap, and that want a fixed rate during the permanent loan period and a floating rate prior to the start of the swap.
www.housingfinance.com /ahf/articles/2005/february/swaps.html   (1346 words)

 CNN.com - ASEAN ministers to tackle currency swap - April 2, 2001
Finance ministers of Association of Southeast Asian Nations (ASEAN)-member countries will gather in Kuala Lumpur this week to tackle an expanded web of currency swaps with China, Japan, and South Korea.
The Asian currency swap is a scheme which gives financial aid to member nations facing short-term liquidity needs in times of financial distress.
ASEAN finance ministers are also expected to review the terms of the scheme at their meeting this week.
edition.cnn.com /2001/BUSINESS/asia/04/02/asia.currency.swap   (679 words)

 Vernimmen - Definition of Swap - Finance dictionary
Swap is an exchange of financial assets or flows between two entities during a certain period of time.
Major forms of swap contracts: currency swap without principal, interest rate swap, currency swap (with principal).
Unlike financial assets, financial flows under swap contracts are traded over the counter, with no impact on the balance sheet and allow the parties to modify the exchange or interest rate terms (or both simultaneously) on current or future assets or liabilities.
www.vernimmen.com /html/glossary/definition_swap.html   (388 words)

 Swap agreement/Finance and economics general term   (Site not responding. Last check: )
Finance and economics general term > Term to understand the world's finance > Swap agreement
When the foreign exchange buckwheat noodle becomes unstable to expand the foreign currency reserve because of the arrangement that accommodates the foreign currency each other, the central bank in each country buys and sells the currency and the foreign currency of the home country, and intervenes the exchange market.
The arrangement of accommodating the foreign currency in the country and the region each other is a swap agreement because it cannot occasionally settle it by trust's in the national currency decreasing if it is not a foreign currency.
biz.ifmecatch.com /archives/2005/10/swap_agreement.html   (162 words)

 India may swap currencies with ADB : HindustanTimes.com   (Site not responding. Last check: )
Such swapping is expected to protect the local borrower from foreign exchange risk.
Finance ministry officials said that the proposal of the ABD would have to be examined by the Reserve Bank of India since it would impact money supply in the economy.
In addition to allowing ADB a currency swap, the finance ministry is also talking to rating agencies like Crisil to undertake credit rating of special purpose vehicles, set up to undertake infrastructure projects in the country.
hindustantimes.com /news/181_1896134,0002.htm   (430 words)

Although the swap spread does tend to converge to its fundamental level, our findings are consistent with the argument that the spread converges more slowly when traders have been weakened by trading losses, and that higher trading risk can cause the spread to diverge from its fundamental level.
The use of swaps by market participants to meet their hedging objectives depends on a stable relationship between the interest rate swap rate and other interest rates; convergence trading activity that stabilizes the swap spread therefore can have wide-ranging benefits to the economy.
Destabilizing shocks in the swap spread are found to be associated with a fall in the volume of repo contracts in a way that is consistent with an unwinding of trading positions.
www.allbusiness.com /government/3495517-1.html   (6599 words)

 Debt swaps for states to begin soon
In the face of the severe debt burden of states at Rs 5,80,000 crore (Rs 5, 800 billion), the Centre proposed the debt swap at the chief ministers' conference convened last year to find ways to overcome the difficult fiscal situation.
Last year, the Centre agreed to swap debts worth Rs 25,000 crore (Rs 250 billion) -- Rs 15,000 crore (Rs 150 billion) on accont of small savings and the remaining for market borrowings by states.
Although states welcomed the move, some of them asked the Centre to swap more debts as their interest outgo was still as high as Rs 69,000 crore (Rs 690 billion).
www.rediff.com /money/2003/jan/28debt.htm   (262 words)

 Interest Rate Swaps Gain Traction in Muni Market
Now more and more municipal finance officers are weighing the benefits and risks of derivatives and cozying up to terms such as interest rate swaps, swaptions and synthetic refundings.
Floating-to-fixed rate swaps are the most frequently used of the “synthetic” (or synthetic floating rate debt) derivatives, although fixed-to-floating rate swaps and floating-to-floating rate swaps are also in use to a lesser extent.
Also infiltrating the municipal derivatives arena are Basis Swaps which are swap agreements based upon the trading differences between taxable interest rates and tax-exempt interest rates and is used to reduce the risk of potential changes in tax laws that could reduce state tax revenue levels.
www.fenews.com /fen49/one_time_articles/muni-swaps/muni-swaps.html   (1411 words)

 WWF | Conservation Finance
That level of investment is far beyond the means of developing countries, which in many cases are struggling to meet debt obligations and provide basic services to their citizens.
In the 1980s, we were one of the pioneers of the concept of the debt-for-nature swap.
Since then, we have played a vital role in debt-for-nature swaps that have converted an estimated $200 million owed by debtor countries in Africa, Asia and Latin America into new sources of funding for forest preservation and the protection of endangered wildlife.
www.worldwildlife.org /conservationfinance/index.cfm/swaps.cfm   (336 words)

 Finance Department - Swap Policy
The purpose of the Interest Rate Risk Management Policy is to outline a framework for the utilization of interest rate swaps, and other financial products (Caps, Collars, etc.) available in the marketplace, as they relate to the City of Palm Bay’s Debt Management Policy and programs.
Any swap or derivative product transaction should not impair the outstanding bond rating of the City or negatively affect the amount of credit enhancement capacity available to the City.
The City will be open to innovative ideas for any proposed transaction as well as variations from the following guidelines provided that such variation shall be fully explored with the City’s advisors and explained to the Council Members of the City.
www.palmbayflorida.org /finance/policies/swap.html   (132 words)

 swap Resources | TechRepublic
Moving swap file to network drive?Hello,I'm trying to move the swap files on a Windows 2003 server to a targa network NFS drive.
Circuit board swap - didn't work, can see in bios, but can't see in XPI tried a circuitboard swap, exact serial/pn and firmware - but when it boots, it keep trying to access the drive, with that up and down sound.
Swap & Fall 2 is a cute point-and-click puzzle game whose appeal is based on the unhurried brain challenge, wonderful music, and graphics crafted by the patient hands of talented artists.
search.techrepublic.com.com /search/swap.html   (1083 words)

 1990 and prior
And until recently, the only way they could hedge against a rate rise was by immersing themselves in the complexities of financial futures, a step that many refused to take.
In US dollars, swaps under two years grew by 55 percent and stops between two and five years grew by 33 percent, while swaps between five and 7 years grew by only 16 percent and swaps between seven and 10 years actually declined by 3 percent.”
Corporations used to forward rage agreements (TRAs), swaps and callable debt have suddenly understood that options are just an extension of these products, and that they do not have to be risky or expensive.
www.cmra.com /html/1990_and_prior.html   (1341 words)

Swap can refer generically to the exchanging of one thing for another.
In finance a swap is an agreement to exchange one set of cash flows for another.
Book swapping is the practice of swapping of books among people.
www.dirpedia.com /swap.html   (266 words)

 Washington State Finance Committee Meeting Minutes - March 10, 1997
Kerr stated the interest rate swap was part of a financing package where the University of Washington would enter into a 10 year variable rate line of credit and then lock into a fixed rate if the rates went up.
The University of Washington is proposing to use the swap to finance the Harborview Medical Center’s share of the acquisition of a network of primary health care clinics.
Kerr also explained RCW 39.96 sets forth a series of conditions which must be met prior to the execution of a swap agreement.
www.wa.gov /tre/SFC/1997/fc970310.htm   (707 words)

 Argentina's bond swap deal is smoke and mirrors
David DeRosa, president of DeRosa Research and Trading, is an adjunct finance professor at the Yale School of Management and the author of ``In Defense of Free Capital Markets.'' The opinions expressed are his own.
The unusual aspect is that Argentina appears to want to make the bond swap a voluntary program for some $20 billion in bonds.
So I am going to call this for what it is. The Argentine bond swap, though not technically a default, is in fact a virtual default.
www.jubileeresearch.org /finance/Argentina_swap_mirror.htm   (831 words)

 Debt-equity swap/Finance and economics general term   (Site not responding. Last check: )
Finance and economics general term : Debt-equity swap
Finance and economics general term > Term concerning financial instrument > Debt-equity swap
Copyright ©2005 Finance and economics general term, All Rights Reserved.
biz.ifmecatch.com /archives/2005/09/debtequity_swap.html   (135 words)

 Environmental Finance: Publications & Documents:Reports   (Site not responding. Last check: )
In its co-operation with the EECCA countries on debt for environment swaps, the EAP Task Force focuses on analysing opportunities for and feasibility of such swaps and on developing domestic capacity of eligible countries.
The Report, written in English, supports and supplements an analysis of environmental financing in EECCA countries that was also prepared by the OECD Secretariat of the Task Force for the Implementation of Environmental Action Programme for Central and Easterm Europe (EAP TF).
Financing Water and Environment Infrastructure: The Case of Eastern Europe, the Caucasus and Central Asia
www.oecd.org /findDocument/0,2350,en_2649_34335_1_119666_1_1_1,00.html   (588 words)

 Joel S. Telpner
$90 million leveraged hedge fund of funds linked total return swap with embedded liquidity facility to be used to make monthly purchases of reference assets and notional adjustments to offset total return shortfalls.
S&P Hedge Fund Index linked leveraged total return swap with a variable asset allocation between the Index and defeasing instruments and subject to defeasance triggers and take out by a principal-protected EMTN linked to the Index with initial leverage of 4:1 subject to resets as the cushion changes.
Conversion of secured loan to leveraged feeder fund to new leveraged $175 total return swap intended to replicate exposure to a principal protected investment held by the prior feeder fund.
www.mayerbrownrowe.com /lawyers/profile.asp?hubbardid=T049465359   (956 words)

 Trader’s hedge bets with bond-swap trade-Finance-Finance / Insurance-News By Industry-News-The Economic Times   (Site not responding. Last check: )
Traders recommend buying the 5-year benchmark federal bond and paying the 5-year fixed-swap rate when the spread hits a negative 60 basis points, which will be its widest in a year.
This has pushed bond yields higher, but the swap curve has not risen as sharply due to abundant liquidity in the banking system and it is currently below the bond yield curve.
The other leg of the trade would be paying the 5-year fixed-rate swap at 7.34 percent and receiving the overnight floating rate at around 6.0 percent, thus immediately earning the investor a positive carry of 58 basis points.
economictimes.indiatimes.com /articleshow/1848882.cms   (573 words)

 Asia Times Online :: Southeast Asia news and business from Indonesia, Philippines, Thailand, Malaysia and Vietnam
BANGKOK - Thai Prime Minister Thaksin Shinawatra's decision to swap his finance and commerce ministers represents no change in policy, but puts the economic duo in positions that better reflect their strengths.
New finance minister Thanong Bidaya last held the position in 1997, when he oversaw the float of the baht that led the country into a financial crisis.
Sources said Somkid felt "strained" at the finance ministry and wanted to take the commerce portfolio so he could focus on revamping the bureaucracy to better promote exports.
www.atimes.com /atimes/Southeast_Asia/GH05Ae02.html   (683 words)

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