Rate anticipation swaps

Definition:

An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, given the investor's assumptions about future changes in interest rates.

Investing Essentials


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

Term of the Day

Mortgage life insurance

A life insurance policy that pays off the remaining balance of the insured person's mortgage at death.

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