Swap reversal

Swap reversal

An interest rate swap designed to end a counterparty's role in another interest rate swap, accomplished by counterbalancing the original swap in maturity, reference rate, and notional amount.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Swap Reversal

An interest rate swap with the exact opposite terms as another interest rate swap. An investor makes a swap reversal in order to close the position in the interest rate swap she already has.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The Swiss National Bank took no other monetary policy actions-for example, engaging in liquidity-providing repurchase operations-to offset these swap reversals. In effect, the Swiss interventions were sterilized.