Financial swap
Financial swap (or, simply, swap) is an exchange of cash payment obligations. Usually occurs because the parties involved prefer someone else's payment pattern or type.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Swap. An exchange of cash payment obligations. Usually occurs because the parties involved prefer someone else's payment pattern or type.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Swap. Two parties agree to exchange obligations to make specified payment streams.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
