Reverse Swap Audiobook by iMinds
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Listen to full audiobook for free : https://litupbook.com/free Title: Reverse Swap Subtitle: Money Categories: Finance Author: iMinds Narrator: Emily Sophie Knapp Publisher: iMinds Release date: 11-18-2010 Language: English Summary: Learn about Reverse Swaps with iMinds Money's insightful fast knowledge series. A reverse swap is a secondary swap agreement entered into by a party to an existing swap contract. The secondary swap will offset, or reverse, the position held in the original agreement. In other words, it is a new swap with the exact opposite terms to a pre-existing swap contract is made. A reverse swap can therefore simply be thought of as the undoing, without the cancellation, of a previous swap agreement. However, the reverse swap need not be executed with the same counter-party to the original as it is a completely new contract and thereby allows one party to pull out from a swap at no extra cost, even if the counter-party intends to keep their investment position. The reason for and method of executing a reverse swap will depend on the nature of the original agreement. Swaps are a type of derivative that, as the name suggests, involves the trading of financial benefits between two counter-parties. These benefits depend on the underlying asset in the swap agreement. Most commonly bond repayments are used, though equity and commodities based swaps are also actively traded. #ad Disclosure: As an Amazon Associate I earn from qualifying purchases.
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