Asset swap

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Asset swap

An interest rate swap used to alter the cash flow characteristics of an institution's assets in order to provide a better match with its liabilities.

Asset Swap

A swap in which the legs are two investments, one with a fixed return and one with a variable return. For example, two investors could agree to swap bonds, which have guaranteed coupons, and an index fund, which has a return linked to the performance of some index. The counterparties to an asset swap are usually seeking favorable cash flows to fulfill their investment goals. While it is not required, debt obligations are usually at least one of the assets that are swapped.
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The in-principle agreement involving huge asset swaps is part of a major restructuring of Germany's energy market as Europe's powerhouse switches from conventional to renewable power.
Under the new structure, the SCF has also entered into a number of asset swaps to hedge the fixed-rate of interest received on the underlying Belgian residential loan assets against the post-swap floating-rate interest due on the majority of the OF.
Non-performing loans fell to 40 per cent, or AaAaAeAa[c]AaAaAeAe1/48 billion, of the book in March 2017, from a peak of 53 per cent in December 2014, driven by loan restructurings, debt for asset swaps and write-offs," Moody's said in the report.
73bn compared with a year ago, after a series of asset swaps with Swiss rival Novartis, which included the sale of its ofatumumab cancer treatments.
The deal with Novartis follows a previous series of asset swaps between the two companies that completed earlier this year.
Gazprom is building a global strategic alliance with energy major Royal Dutch Shell that will include asset swaps and allow the Russian gas giant to penetrate new markets, its chief executive told Reuters.
However, last week saw a rash of deals in the healthcare industry, including value-creating asset swaps involving Glaxo, Novartis and Lilly, an approach by Valeant for Botox-maker Allergan, and Zimmer's purchase of Biomet.
2425%, in line with the guidance of asset swaps plus 155 basis point area and 177 bps over March 2019 Australian Commonwealth Government bonds.
2425 percent, in line with the guidance of asset swaps plus 155 basis point area, and 177 bps over March 2019 Australian Commonwealth Government bonds.
In 2006 Gazprom and Sonatrach pledged to cooperate under a memorandum of understanding in Algeria, Russia, and overseas on exploration, production, transportation, and asset swaps.
This paper begins with a description of credit default swaps, total return swaps, and asset swaps and then focuses on the mechanics and risks of credit default swaps.
ENERGY giant BP and exploration firm BG Group yesterday agreed one of the largest North Sea asset swaps in recent history.