reverse swap

Reverse Swap

A swap that restores an earlier position. For example, one may swap U.S. dollars for British pounds when doing so is advantageous to one's investment strategy, then reverse swap the pounds back to dollars when that becomes advantageous.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reverse swap

The exchange of one bond for another such that an earlier investment position is reestablished to the investment position that existed before an earlier swap. For example, an investor might swap intermediate-term bonds for long-term bonds to take advantage of a steeply sloped yield curve. As the yield curve flattens, the investor might engage in a reverse swap by exchanging the long-term bonds for intermediate-term bonds.
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.
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Indirect policy instruments include sale of CBO CDs to absorb excess liquidity, repo operation to inject liquidity in domestic currency and swap and reverse swap operation for lending in foreign currency to the domestic commercial banks as and when required.
Russia is in talks with Iran to set up a reverse swap formula to convey its Southern oil to the Caspian Sea, so that the Russian tankers would be able to take it to nearby oil terminals.
The Brazilian central bank has sold USD1.48bn in reverse swap contracts on offer, the seventh reverse swap auction held by the central bank so far this year, reports Dow Jones.
At a reverse swap auction on February 10, the central bank has sold 86 percent of contracts offered, worth USD855.2m.
Reverse swap auctions enable investors to exchange futures positions in US dollars for positions linked with domestic interest rates.
The event has attracted huge media attention and is the first half of a series which will see the speedway riders travel to Donnington Park to carry out the reverse swap later in the season.
Global Banking News-June 29, 2011--Brazil sells 73.5 percent of reverse swap contracts(C)2011 ENPublishing - http://www.enpublishing.co.uk
The Brazilian central bank has sold 73.5 percent of reverse swap contracts offered at an auction on Tuesday, equal to USD1.24bn.
Global Banking News-January 17, 2011--Brazil central bank sells contracts in reverse swap auction(C)2011 ENPublishing - http://www.enpublishing.co.uk
The central bank added CNY17bn to the financial system at a yield of 4.4 percent, using seven-day reverse swaps, reports Bloomberg.