A type of transformation that is based on the use of interest rate swaps. It is the process whereby an investor lends money at a floating rate (that is, owns a floating rate bond) and “synthetically” transforms it to a fixed-rate bond by entering into a swap, in which he/she becomes the floating rate payer and the fixed rate receiver. The counterparty to the swap is the fixed rate payer and the floating rate receiver.

For more details, see: using a swap to transform an asset.