swap 2

swap 2 definition - business

swap 2

To trade one asset for another. For example, an investor who believes interest rates will rise swaps a bond with a 20-year maturity for a bond with a 5-year maturity. Also called exchange2, substitute, switch.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.