Back-to-Back Swap

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.
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Investors from outside the region can participate indirectly, through back-to-back swap arrangements and mutual funds.
Aron simultaneously entered into a back-to-back swap agreement with RBCEL, exchanging a fixed price for a monthly index price.
In this complimentary webcast, "Hedging Commercial Loans with Interest Rate Swaps", Martin McConnell, Managing Partner with Provident, reviews the key benefits of how a back-to-back swap structure can reduce rate risk and accelerate income through increased loan production.
The 'F1+' ratings are based on the joint probability of a default by Hypo Public Finance Bank, rated 'A/F1', and the back-to-back swap counterparties, which must be rated at least 'A/F1', under the total rate of return swaps.
When Hypo International is rated less than 'F1' or its equivalent, it must enter into a back-to-back swap agreement for each asset with a third party with a rating of at least 'F1' or its equivalent.
That Headley 3-year-olds had breakthrough wins in back-to-back Swaps Stakes also makes sense because the trainer practices such patience with young horses, the kind his rivals might push into the winter's Triple Crown prep races.