A combination of two swaps, namely two cross-currency swaps or two interest rate swaps for the purpose of effectively extending the maturity of a fixed-rate debt issued by a party into the swap. This swap reverses the terms of an existing swap such as the cash flow pattern, where the fixed rate payer becomes the floating rate payer, and vice versa. This terminates the two opposing cash flow payments, alleviating the need for the two counterparties to pay each other. In that sense, a back-to-back swap has the effect of cancelling a previously made swap. However, the obligation of each counterparty doesn’t terminate.

The back-to-back swap is also sometimes called a reverse swap.