Exchange Currency

rate anticipation swap

Swap of bonds that have different maturity dates, usually done to take advantage of expected changes in interest rates. For example, an investor who thought that interest rates were about to fall would swap short-term bonds for long-term bonds because in this scenario long-term bonds would experience a greater increase in value.

Related information about rate anticipation swap:
  1. Rate Anticipation Swap Definition | Investopedia
    A rate anticipation swap is often made in order to take advantage of more profitable bond opportunities. Rate anticipation swaps are speculative in nature, since ...
     
  2. Rate Anticipation Swap - Financial Dictionary - The Free Dictionary
    The exchange of bonds in one's portfolio for different bonds that will better mature at the portfolio's desired duration, given the investor's expectation about the ...
     
  3. rate anticipation swap - Invest Definition
    rate anticipation swap definition: The sale of one bond combined with the purchase of another bond of different maturity in order to take maximum advantage of ...
     
  4. What is rate anticipation swap? definition and meaning
    Definition of rate anticipation swap: Swap of bonds that have different maturity dates, usually done to take advantage of expected changes in interest rates.
     
  5. Rate Anticipation Swap: Definition from Answers.com
    Rate Anticipation Swap A type of swap in which bonds are swapped according to their current duration and predicted interest rate movements.
     
  6. Managing Fixed Income Investment Portfolios in a Dynamic Economy
    Jun 15, 2012 ... more attractively priced. ▫ Inter-market spread swap. − Exploiting deviations in spreads between two market segments. ▫ Rate anticipation swap ...
     
  7. Ch 16 flashcards | Quizlet
    Vocabulary words for Managing bond portfolios . Includes ...
     
  8. Active Management (Fixed Income) Study Guide & Homework Help ...
    An interest rate anticipation swap depends on the bond portfolio manager's ability to forecast interest rate changes. If the bond portfolio manager anticipates that ...