A swap in which one leg is covered by an underlying bond or note with identical, but offsetting, terms and specifications. More specifically, in a matched swap the notional amount is identical to the actual loan amount, while the fixed rate leg is equal to the fixed interest rate paid on the underlying debt.

The matched swap also refers to a swap which is hedged by another swap, i.e., it is coupled with an offsetting swap in order to mitigate market risk.