Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Bond Swap'
The simultaneous sale of one bond issue and the purchase of another. The reasons for bond swaps vary. For example, a maturity swap would be to sell a bond with a ten year maturity and buy a bond with a five year maturity, thereby reducing that average maturity of a bond portfolio.