An exchange of two assets. For example, one type of asset swap is the exchange...
A package of a cash credit instrument and a corresponding swap that transforms the cash flows of an asset (typically a fixed rate bond or loan) into a floating interest rate instrument, typically indexed to LIBOR.
a combination of a defaultable bond with a fixed for floating interest rate swap
a combination of an asset plus an interest rate or currency swap used to change the nature of the asset
A transaction that attaches a swap contract to an asset in a way that changes one or more attributes of the asset's cash flow.
By taking advantage of market imperfections, a fixed-rate asset can, theoretically, be transferred into a floating-rate one, either in the same currency or a different one. Known as synthetic securities, asset swaps can be used to spot pricing anomalies in the bond and swaps markets, which can be exploited accordingly.
non-vanilla swap customized to change the character of a specific asset.
An interest rate swap or currency swap which is attached to an asset.
A Swap that converts a fixed- (floating-) coupon asset into a floating- (fixed-) coupon asset. This is in contrast to the more familiar (Liability) Swap that converts a fixed- (floating-) coupon liability into a floating- (fixed-) coupon liability.
An interest rate swap used to alter the cash flow characteristics of an institution's assets so as to provide a better match with its liabilities.
The bond's swapped spread, in basis points. The asset swap spread, or gross spread, is derived by valuing a bond's cash flows via the swap curve's implied zero rates. This gross spread is the basis point amount added to the swap curve, which causes a bond's computed value to equal the market price of the bond.