Swap assignment

(redirected from Swap Novation)

Swap assignment

Related: Swap sale

Swap Assignment

A swap in which one party pays a leg to the counterparty, then assigns the other leg to a third party. Thus, the first party steps out of the deal, receiving or paying the net amount of the deal. It is also called a swap sale or swap novation.
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Additionally, BONY is proposing to execute a Credit Support Annex (CSA) in conjunction with the swap novation.
Fitch does not expect the swap novation and proposed CSA to have any impact on the existing ratings on the above referenced transaction.
Fitch has concluded that the swap novation to MLDP will not negatively affect the ratings as this counterparty exposure is consistent with the current 'Csf' rating on the notes.
The proposed remedies include swap novations or explicit guarantees.
The two proposed remedies include either swap novations or explicit guarantees.