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Back-to-Back Swap |
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Back-to-Back Swap A swap that reverses the terms of a previously agreed-upon swap. For example, the fixed rate payer in the first swap becomes the floating rate payer in the second swap. This eliminates the need for the two parties to pay each other, since each owes the other the same amount. It is sometimes used in lieu of simply canceling a swap. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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