Bond Swap

What Does Bond Swap Mean?
A strategy in which an investor sells a bond and at the same time purchases a different bond with the proceeds from the sale.

Investopedia explains Bond Swap
There are several reasons why people use a bond swap: to seek tax benefits, to change investment objectives, to upgrade a portfolio's credit quality or to speculate on the performance of a particular bond.

Filed Under: Bonds, Fixed Income

Related Terms

Bond
Discount Bond
Face Value
Premium Bond
Swap
Wash Sale
More Related Terms

Related Links

Advanced Bond Concepts - Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?
Corporate Bonds: An Introduction To Credit Risk - Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

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