Exchangeable Zero-Coupon Swap

Investment Banking
Proceeds
February 17, 2023
Investment Banking
Seed Funding
February 17, 2023

A zero-coupon swap in which the fixed rate receiver sells a third party (a dealer) an embedded option to convert the single payment to a series of fixed cash flows. A fixed rate receiver will exchange a zero-coupon swap on expectation of declining volatility and stable or downward moving interest rates.

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