Asset swap - Financial definition
Concise definition of the term asset swap
Term referring to the restructuring of a security's cash flows with the help of a swap.
Comprehensive definition of the term asset swap
Typical examples of such restructurings are:
- Swapping a bond's fixed-rate coupon into floating rate payments (or vice versa)
- Converting cash flows from one currency to another
- Swapping the yield from a security against a cashflow which is based on an index in another asset class