The act of trading fixed-income securities for bonds with similar features and higher yields. A substitution swap will typically be initiated by an investor who believes that bonds are incorrectly priced in the current market, and that a profit can be made by selling when bond prices re-adjust.
Related information about substitution swap:
- Substitution Swap Definition | Investopedia
A swap that is carried out by trading a fixed-income security for a higher yielding bond with similar features.
- Substitution Swap - Financial Dictionary - The Free Dictionary
A swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but that offers a higher ...
- What is substitution swap? definition and meaning
Definition of substitution swap: The act of trading fixed-income securities for ... A substitution swap will typically be initiated by an investor who believes that ...
- Substitution Swap: Definition from Answers.com
Substitution Swap A swap that is carried out by trading a fixed-income security for a higher yielding bond with similar features.
- Substitution swap
Similar financial terms. Amortizing swap. An interest rate swap with a decreasing notional principal amount. Volatility swap. A volatility swap is a financial ...
- Substitution swap Definition - NASDAQ.com
Substitution swap: read the definition of Substitution swap and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Substitution Swap Definition
The definition of the financial term substitution swap. Find more finance definitions inside the PFhub glossary your Personal Finance Hub.
- Active Management (Fixed Income) Study Guide & Homework Help ...
A substitution swap replaces one bond with another bond that has very similar characteristics, such as coupon rate, time to maturity, rating quality, and call and ...