Financial swap

From CNM Wiki
Revision as of 00:59, 2 November 2019 by Gary (talk | contribs) (Definitions)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

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

Related lectures