Zero Basis Risk Swap - ZEBRA

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Dictionary Says

Definition of 'Zero Basis Risk Swap - ZEBRA'

A swap agreement between a municipality and a financial intermediary.

Also known as a "perfect swap" or "actual rate swap".
Investopedia Says

Investopedia explains 'Zero Basis Risk Swap - ZEBRA'

The municipality pays a fixed rate of interest to the financial intermediary and receives a floating rate of interest in return. The floating rate received is equal to the floating rate on the outstanding floating rate debt initially issued by the municipality to the public.

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