swap /'swäp/ n
1: an exchange of securities
2: a derivative contract in which two parties (as corporations) agree to exchange rates esp. relating to debt

Merriam-Webster’s Dictionary of Law. . 1996.

index barter, exchange, interchange, replace, replacement, trade (commerce)

Burton's Legal Thesaurus. . 2006

An over-the-counter derivative contract between two parties to exchange a series of interest rate flows or payments for a stated period of time. For example, swaps enable parties to convert:
• Fixed rate liabilities or assets into floating rate liabilities and vice versa in a given currency (interest rate swap).
• Liabilities in one currency into another currency (currency swap).
+ swap
A private agreement between two parties (known as counterparties) who agree to exchange specified cash flows based on the performance of a debt obligation or based on fluctuations in the value of an equity security, commodity or other asset, or fluctuations in interest rates or relative currency values. One party is typically the fixed rate payer, which pays a fee, often in monthly or other regular installments, and the other party is usually the floating rate payer, which makes one or more payments to the fixed rate payer based on the occurrence of certain events with respect to a third party, the reference entity, or a basket or index of third parties, the reference entities. In certain instances both parties may be floating rate payers with the "fee" paid by the first floating rate payer determined by reference to LIBOR or another index. Swaps are often entered into for the purpose of hedging against risk, such as the risk that an obligor on a debt obligation will be unable to pay or that an equity security, index or option will decline in value. However, there is no requirement that the underlying obligation or instrument be owned by a party to a swap, so swaps are often used as speculative investments. Typical forms are interest rate swaps, credit default swaps, total return swaps, foreign currency swaps and equity swaps.
Related terms

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • swap — swap …   Dictionnaire des rimes

  • SWAP — (finance) Le swap (de l anglais to swap : échanger) ou l échange financier (J.O. du 31 janvier 1990) est un produit dérivé financier. Il s agit d un contrat d échange de flux financiers entre deux parties, qui sont généralement des banques… …   Wikipédia en Français

  • swap — [ swap ] n. m. • 1963; mot angl. « troc, échange » ♦ Anglic. Fin. Accord de crédit réciproque. ⇒ report. Accord de swap entre banques. Recomm. offic. crédit croisé, échange financier. ● swap nom masculin (anglais swap, de to swap, troquer)… …   Encyclopédie Universelle

  • Swap — 〈[swɔ̣p] m. 6; Bankw.〉 1. Differenz zw. Kassa u. Terminkurs 2. Tauschhandel [engl., „Tausch“] * * * Swap [swɔp], der; s, s [zu engl. to swap = (aus)tauschen] (Bankw., Börsenw.): 1. Austausch bestimmter Rechte, Pflichten o. Ä. 2. Differenz… …   Universal-Lexikon

  • Swap — Swap, v. t. [imp. & p. p. {Swapped}; p. pr. & vb. n. {Swapping}.] [OE. swappen to strike; cf. E. to strike a bargain; perh. akin to E. sweep. Cf. {Swap} a blow, {Swap}, v. i.] [Written also {swop}.] 1. To strike; with off. [Obs. or Prov. Eng.]… …   The Collaborative International Dictionary of English

  • Swap — Swap, n. [Cf. G. schwapp, n., a slap, swap, schwapp, schwapps, interj., slap! smack! and E. swap, v.t.] 1. A blow; a stroke. [Obs. or Prov. Eng.] [1913 Webster] 2. An exchange; a barter. [Colloq.] Sir W. Scott. [1913 Webster] …   The Collaborative International Dictionary of English

  • swap — s.m.inv. ES ingl. {{wmetafile0}} TS fin. 1. nel linguaggio di borsa, credito reciproco a breve termine (tre sei mesi rinnovabili) fra le banche centrali dei paesi aderenti al Fondo Monetario Internazionale: accordi di swap; anche in funz. agg.inv …   Dizionario italiano

  • Swap — Swap, v. i. [Cf. {Swap}, v. t.] 1. To fall or descend; to rush hastily or violently. C. Richardson (Dict.). [1913 Webster] All suddenly she swapt adown to ground. Chaucer. [1913 Webster] 2. To beat the air, or ply the wings, with a sweeping… …   The Collaborative International Dictionary of English

  • Swap — Swap, adv. [See {Swap}, n.] Hastily. [Prov. Eng.] [1913 Webster] …   The Collaborative International Dictionary of English

  • Swap — [svɔp] der; s, s <aus engl. swap »Tausch« zu to swap »(aus)tauschen«>: 1. Austausch bestimmter Rechte, Pflichten o. Ä. 2. Differenz zwischen dem Kassakurs u. dem Terminkurs (Bankw.) …   Das große Fremdwörterbuch

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