The two securities being swapped have similar coupon rates, maturity dates, call features, credit quality, etc.
Investors will most often participate in substitution swaps when they believe there is a temporary discrepancy in bond prices due to market disequilibrium.
Investment dictionary. Academic. 2012.
Substitution swap — 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 offers a higher yield. The New York Times Financial Glossary … Financial and business terms
substitution swap — 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 yield. Bloomberg Financial Dictionary … Financial and business terms
substitution — I (New American Roget s College Thesaurus) Serving in place of another Nouns 1. substitution, commutation; supplanting, supersedure, supersession, replacement; metonymy (see figurative); interchange; transfer. 2. (substitute object or action)… … English dictionary for students
swap — 1. verb 1) I swapped my stereo for some hockey equipment Syn: exchange, trade, barter, interchange, bargain; switch, change, replace 2) we swapped jokes Syn: bandy, exchange, trade … Thesaurus of popular words
substitution — Synonyms and related words: agent, alienation, alternate, alternative, amends, analogy, atonement, autism, autistic thinking, avoidance mechanism, backup, balancing, blame shifting, change, changeling, changing, commutation, comparison,… … Moby Thesaurus
swap — I (New American Roget s College Thesaurus) n. & v. exchange, barter. See interchange. II (Roget s IV) v. Syn. interchange, trade, barter; see exchange 2 . III (Roget s 3 Superthesaurus) v. trade, exchange, switch, barter. IV (Roget s Thesaurus… … English dictionary for students
Pure Yield Pickup Swap — A transaction in which bonds with lower returns are swapped for bonds with higher returns. With a pure yield pickup swap the sole purpose of the transaction is to increase yield, the new bonds will have a similar maturity and risk rating as the… … Investment dictionary
Compare-and-swap — In computer science, the compare and swap (CAS) CPU instruction is a special instruction that atomically compares the contents of a memory location to a given value and, only if they are the same, modifies the contents of that memory location to… … Wikipedia
Своп «близнецов» — (SUBSTITUTION SWAP) тип облигационного свопа, при котором инвестор, используя конъюнктуру рынка, обменивает облигации с аналогичными финансовыми характеристиками, выбирая более доходную … Финансовый глоссарий
change — 1. verb 1) this could change the face of television things have changed Syn: alter, make/become different, adjust, adapt, amend, modify, revise, refine; reshape, refashion, redesign, restyle, revamp, rework, r … Thesaurus of popular words
