Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

Asset Swap

An asset swap works as a transaction where payments that comes from some type of asset will be exchanged in favor of payments from another form. No rates are swapped but rather the assets themselves. This is notable in that in an asset swap the two assets involved are completely different from one another. For example, a bond can be swapped in favor of stock.


Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.