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Bond Swap

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Dictionary Says

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.
Investopedia Says

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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