Zero Basis Risk Swap - ZEBRA
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". |
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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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