Finance

Bull Note

June 30, 2021
Derivatives

Reverse Cash and Carry

June 30, 2021

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A swap agreement made between a municipality (a city or town local council) and a financial intermediary, in which the former is the fixed rate payer and the latter is the floating rate payer. However, the floating rate is (and must be) exactly equal to a floating rate liability on a municipal debt.

The zebra swap is also called perfect swap, zero basis risk swap, actual rate swap.

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