intermarket spread swap(redirected from Inter-Market Spread Swap)
Intermarket Spread Swap
The sale of one bond and the purchase of another with completely different terms, such as a different coupon rate or maturity. Alternatively, one may directly swap one bond for the other. Intermarket spread swaps occur when the market and/or one's investment goals have changed, rendering it necessary to adopt a different bond strategy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
intermarket spread swap
The sale of one bond combined with the purchase of another bond that has entirely different features in order to improve the investor's position.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.