The simultaneous sale of one bond issue and the purchase of another, to stretch...
An investment strategy wherein an investor liquidates one of his or her current bond holdings and simultaneously buys a different issue in its place.
The simultaneous sale of one bond issue and the purchase of another. These transactions can be done for maturity and yield purposes, quality considerations and tax strategies.
Simultaneous sale of one security and the purchase of another.
The sale of one bond issue and purchase of another bond issue simultaneously. See: Swap; swap order.
a technique whereby an investor chooses to sell a bond and simultaneously purchase another bond with the proceeds from the sale
In a bond swap, you buy one bond and sell another at the same time. You might do a swap for several reasons, such as selling one bond at a loss at year's end to get a tax write-off while buying another to keep the same portion of your portfolio allocated to bonds. You might also sell a bond with a lower rating to buy one with a higher rating, or you might sell a bond that's close to its maturity date so you can put the money into a bond that won't mature for several years.
