Extending maturity through a swap, e.g. selling a 2-year note and buying one with a slightly longer current maturity.
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A swap in which one investor exchanges a bond for another bond with the same or almost the same terms, but with a longer maturity. An investor may do this directly by swapping one bond for another, or indirectly by selling the bond with the shorter maturity and buying the bond with the longer maturity.
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The exchange of a bond or note for another virtually identical security having a longer maturity.
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.