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.
References in periodicals archive ?
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.
Morrigan investors have a perfected security interest in the first-tier swaps and all amounts due under the back-to-back swaps as well as the amounts on deposit in the swap collection account, which is the account into which all of the back-to-back swap payments are made.
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.