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Annotation 149623426

#asset-swap #finance

a company may sell equity and receive the value in cash, thus increasing liquidity

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Asset swap - Wikipedia, the free encyclopedia
t swap is an exchange of tangible assets for intangible assets or vice versa. Since it is a swap of assets, the procedure takes place on the active side of the balance sheet and has no impact on the latter in regards to volume. As an example, a company may sell equity and receive the value in cash, thus increasing liquidity. A company often utilizes this method when in need for money to invest (internal financing) or to pay off debts. In finance, the term asset swap has a particular meaning.[1] When one re

Annotation 149623433

#asset-swap #finance

When one refers to an asset swap, one has in mind the exchange of the flow of payments from a given security (the asset) for a different set of cash flows

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Asset swap - Wikipedia, the free encyclopedia
sell equity and receive the value in cash, thus increasing liquidity. A company often utilizes this method when in need for money to invest (internal financing) or to pay off debts. In finance, the term asset swap has a particular meaning.[1] When one refers to an asset swap, one has in mind the exchange of the flow of payments from a given security (the asset) for a different set of cash flows. An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR minus a spread (say 20 basis points). Such swaps usually have stub periods in order

Annotation 149623440

#asset-swap #finance

An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR minus a spread (say 20 basis points)

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Asset swap - Wikipedia, the free encyclopedia
ing) or to pay off debts. In finance, the term asset swap has a particular meaning.[1] When one refers to an asset swap, one has in mind the exchange of the flow of payments from a given security (the asset) for a different set of cash flows. An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR minus a spread (say 20 basis points). Such swaps usually have stub periods in order to bring the chronology of the cash flows into line with that of the underlying bond. Contents 1 Introduction 1.1 Mechanics of a Par A

Flashcard 149623447

Tags

#asset-swap #finance

Question

An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR [minus or plus?] a spread (say 20 basis points)

Answer

minus

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An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR minus a spread (say 20 basis points)

Original toplevel document

Annotation 149623458

#asset-swap #finance

swaps usually have stub periods in order to bring the chronology of the cash flows into line with that of the underlying bond

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Asset swap - Wikipedia, the free encyclopedia
change of the flow of payments from a given security (the asset) for a different set of cash flows. An example of this is where an institution swaps the cash flows on a U.S. Government Bond for LIBOR minus a spread (say 20 basis points). Such swaps usually have stub periods in order to bring the chronology of the cash flows into line with that of the underlying bond. Contents 1 Introduction 1.1 Mechanics of a Par Asset Swap 1.1.1 Computing the asset swap spread1.1.2 Market Asset Swap 2 See also3 References Introduction[edit] An asset swap en

Annotation 149623465

#asset-swap #finance

An asset swap enables an investor to buy a fixed rate bond and then hedge out the interest rate risk by swapping the fixed payments to floating. In doing so the investor retains the credit risk to the fixed-rate bond and earns a corresponding return.

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Asset swap - Wikipedia, the free encyclopedia
e chronology of the cash flows into line with that of the underlying bond. Contents 1 Introduction 1.1 Mechanics of a Par Asset Swap 1.1.1 Computing the asset swap spread1.1.2 Market Asset Swap 2 See also3 References Introduction[edit] An asset swap enables an investor to buy a fixed rate bond and then hedge out the interest rate risk by swapping the fixed payments to floating. In doing so the investor retains the credit risk to the fixed-rate bond and earns a corresponding return. The asset swap market was born along with the swap market in the early 1990s, and continued to be most widely used by banks which use asset swaps to convert their long-term fixed rate as

Annotation 149623472

#asset-swap #finance

The asset swap market is over-the-counter (OTC), i.e., not traded on any exchange

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Asset swap - Wikipedia, the free encyclopedia
ith the swap market in the early 1990s, and continued to be most widely used by banks which use asset swaps to convert their long-term fixed rate assets to floating rate in order to match their short-term liabilities (depositor accounts). [2] The asset swap market is over-the-counter (OTC), i.e., not traded on any exchange. There are several variations on the asset swap structure with the most widely traded being the par asset swap. Other types include the market asset swap and the cross-currency asset sw

Flashcard 149623477

Tags

#asset-swap #finance

Question

The asset swap market is [OTC or exchange traded?]

Answer

over-the-counter (OTC), i.e., not traded on any exchange

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The asset swap market is over-the-counter (OTC), i.e., not traded on any exchange

Original toplevel document

Annotation 149623488

#asset-swap #finance

The most common and standard asset swap type is par asset swap.

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Asset swap - Wikipedia, the free encyclopedia
-the-counter (OTC), i.e., not traded on any exchange. There are several variations on the asset swap structure with the most widely traded being the par asset swap. Other types include the market asset swap and the cross-currency asset swap. The most common and standard one is par asset swap. Mechanics of a Par Asset Swap[edit] A par asset swap is really two separate trades: The asset swap buyer purchases a bond from the asset swap seller in return for a full price of par. (&

Annotation 149623510

#asset-swap #finance

A par asset swap is really two separate trades:

The asset swap buyer purchases a bond from the asset swap seller in return for a full price of par.
The asset swap buyer and the asset swap seller enter into a swap, so:
- the buyer receives fixed coupons from the bond so on her side of the swap she wants to pay fixed and receive LIBOR plus minus agreed spread.

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Asset swap - Wikipedia, the free encyclopedia
he asset swap structure with the most widely traded being the par asset swap. Other types include the market asset swap and the cross-currency asset swap. The most common and standard one is par asset swap. Mechanics of a Par Asset Swap[edit] A par asset swap is really two separate trades: The asset swap buyer purchases a bond from the asset swap seller in return for a full price of par. ("Full price" is also known as "dirty price", including the accrued interest in contrast to the term "clean price" which refers to quote net of accrued interest. )The asset swap buyer enters into a swap to pay fixed coupons to the asset swap seller equal to the fixed rate coupons received from the bond. In return the asset swap buyer receives regular payments of Libor plus (or minus) an agreed fixed spread. The maturity of this swap is the same as the maturity of the asset. Figure 1：Describe the basic structure of Asset Swap This transactions is shown in Figure 1. The fixed spread to Libor paid by the asset swap seller is known as the asset swap spread an

Annotation 149623532

#asset-swap #finance

In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

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Asset swap - Wikipedia, the free encyclopedia
een floating side coupons, the floating payment received is half of the Libor plus asset swap spread. This feature prevents the calculated asset swap spread from jumping as we move forward in time through coupon dates. Market Asset Swap[edit] In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity. See also[edit] Government debtInterestSwap (finance) References[edit] ^ "Asset Swap - Investopedia". Investopedia. Archived from the original on 12 April 2009. Retrieved 2009-0

Flashcard 149623539

Tags

#asset-swap #finance

Question

In the market asset swap, the net upfront payment is [...]. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

Answer

zero

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In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

Original toplevel document

Flashcard 149623546

Tags

#asset-swap #finance

Question

In the market asset swap, the net upfront payment is zero. Instead the [...]equals the price of the bond and there is an exchange of notionals at maturity.

Answer

notional on the Libor side

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In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

Original toplevel document

Flashcard 149623553

Tags

#asset-swap #finance

Question

In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the [...]and there is an exchange of notionals at maturity.

Answer

(dirty I guess) price of the bond

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In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

Edited, memorised or added to reading queue

on 01-Jul-2014 (Tue)

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