What’s a swap body?

Swap bodies are intermodal containers that can be moved between truck and rail transport. They are standardized according to ISO dimensions and have foldable legs. They are cost-effective and can be used to serve remote markets. Swap bodies cannot be stacked and are used widely in Europe. They were invented by Malcolm McLean in 1956. […]

What’s a home swap?

Housing exchanges are popular for those who want to travel and stay in a private home. It’s free and flexible, but based on mutual trust. Hospitality exchanges offer a more social experience. Websites can facilitate the exchange for an annual fee, but free sites like Craigslist are an alternative. Be descriptive in your listing and […]

What’s a swap trader’s job?

A swap dealer buys and sells collateralized debt obligations (CDOs), known as credit default swaps (CDS), and must be licensed to sell securities. They negotiate premium payments and commissions based on the level of coverage and risk involved. A swap dealer is a licensed investment broker who buys and sells collateralized debt obligations (CDOs), known […]

What’s a tax swap?

Tax swaps involve selling a declining security and purchasing a similar but higher-priced security to create a loss for tax purposes. While legitimate, there is risk involved if the original security reverses or the newly acquired security declines too much. Tax swaps are strategies that involve the sale and acquisition of two different but similar […]

What’s an asset swap?

Asset swapping is a useful strategy to align a company’s current liabilities with its assets and make it more attractive to lenders. It involves exchanging fixed assets for floating assets to create a gross margin, and can be particularly useful with interest-bearing bonds. As a means of helping a company’s cash flow run more efficiently […]

What’s a Default Credit Swap Spread?

Credit derivatives, such as credit default swaps, were created to protect investors from credit risk. Credit default swap spreads measure the cost of eliminating credit risk for a company and indicate the probability of default. The market for credit derivatives allows investors to trade instruments that protect against credit risk or profit from a company’s […]

What’s a swap curve?

A swap curve is a linear graph showing the relationship between swap rates and time, used to compare prices between swaps at different time periods. Swaps are customized agreements between two entities to exchange cash flows for a specified period of time, commonly used by companies and financial institutions. The curve can indicate whether swap […]

What’s an int. rate swap valuation?

An interest rate swap is an agreement between two parties to exchange cash flows derived from loans with different interest rates. The valuation of the swap is the difference in the present value of the two sources of future income, and the swap allows each party to exploit its comparative advantage in the financial markets. […]

What’s a base swap?

A base swap is a contract between two parties to exchange cash flows at different variable rates, eliminating the risk of price fluctuations from trading in two different floating financial instruments. There are two types of base swaps, simple and cross, and they are commonly used by financial institutions and government agencies to eliminate the […]

What’s a uniform swap?

Uniform swaps involve exchanging specific amounts of money with recurrent payouts based on the flow rate of the two currencies. Interest fees can be fixed or variable, and the exchange is not permanent. Both parties anticipate a greater yield, but ultimately benefit from the exchange rate fluctuations. The swaps of uniforms are made between two […]

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