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Back-to-back swap - Financial definition

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Synonym:  reverse swap

Concise definition of the term back-to-back swap

A back-to-back swap is a swap that is used to offset an existing swap by canceling out the obligations of the original swap.

Comprehensive definition of the term back-to-back swap

These swaps are more complex than simply cancelling an existing agreement and so will only be used if there are specific tax or accounting benefits. Also known as a reverse swap.

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