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Finance Dictionary and Glossary of Investment Terms
The sale of one bond issue and purchase of another bond issue simultaneously. See: Swap; swap order.
A strategy with which an investor sells a bond and at the same time purchases a different bond with the proceeds from the sale.
The simultaneous sale of one bond issue and the purchase of another, to stretch out maturities or for tax reasons. If a bond swap is done for tax reasons, the investor cannot swap into a security that the IRS considers basically the same as the security that he/she swapped out of.