Liability swap

Definition

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

Investing Essentials

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


Term of the Day

Black Friday
A precipitous drop in a financial market . The original Black Friday occurred on September 24, 1869, when prospectors attempted to corner the gold market.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!

Create your free portfolio