Asset swap

Definition

An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


Term of the Day

Managing underwriter
The leading firm in an underwriting group, which originates the deal and acts as an agent for the group.

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