asset-for-asset swap

asset-for-asset swap definition - finance
A situation in which creditors exchange the debt of one defaulting borrower for the debt of another defaulting borrower. Typically, debt is exchanged for new debt that reduces the amount owed but increases the interest that is paid. Debt also may be swapped for additional equity.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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