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Definition of 'Bond Swap'
A strategy in which an investor sells a bond and at the same time purchases a different bond with the proceeds from the sale.
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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.
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Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
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Investing in bonds - What are they, and do they belong in your portfolio?
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Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
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