1. A series of transactions where debts are exchanged between two entities. For example, a corporation may swap commercial paper for a government's municipal bonds. These swaps can occur for a variety of reasons, but the main reason is for profit.
2. Conversion of old debt to either new debt or new equity. Debt swaps can be performed by a company for purposes of avoiding bankruptcy, reorganizing debts, or gaining a more favorable repayment schedule.
Related information about debt swap:
- What is debt swap? definition and meaning
Definition of debt swap: A series of transactions where debts are exchanged between two entities. For example, a corporation may swap commercial paper for a ...
- Debt swap - Financial Dictionary - The Free Dictionary
A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to ...
- BBC News - Q&A: Greek debt swap
Mar 9, 2012 ... Greece must get private sector lenders to agree to take a loss or it won't get the latest bailout it needs to stay afloat.
- BBC News - Greece 'meets bailout conditions' after debt swap
Mar 9, 2012 ... Greece has taken a crucial step towards its second bailout after it secured a deal that is the biggest ever reorganisation of government debt.
- How does Greece's debt swap work? | World news | The Guardian
Feb 19, 2012 ... Bailout to include private bondholders exchanging €200bn of sovereign debt for mix of new bonds of lower value and cash.
- Argentina debt repayment order frozen - FT.com
1 day ago... to lift a so-called lock law in order to reopen a debt swap to holdout creditors led by the US fund Elliott Associates, but with a tough writedown.
- Portuguese Bonds Rise Amid Debt-Swap Optimism; Bunds Snap ...
Oct 3, 2012 ... Portugal's government securities advanced, with 10-year bonds rising for a third day, amid speculation that a bond-swap plan will pave the way ...
- Telefonica raises $1 billion with hybrid debt swap | Reuters
1 day ago ... MADRID (Reuters) - Spain's Telefonica said on Wednesday it would slash 776 million euros ($1 billion) from its over 50 billion euros of debt ...