2025 See all Example Sentences for swap Word History Etymology Verb Middle English swappen to strike; from the practice of striking hands in closing a business deal First Known Use Verb 14th century, in the meaning defined at transitive sense 1a Noun 1625, in the meaning defined above Time...
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an exchange: He got the radio in a swap. Discover More Other Words From swap pernoun un·swapped adjective Discover More Example Sentences “The content itself can change, such as a movie poster being swapped out, so long as I choose a vintage style movie poster.” ...
Although “Switch” and “Swap” refer to change, they don’t mean the same thing. To “Switch” is to make a change, from one thing to the other, without necessarily letting go of the first. To “Swap” is to exchange, meaning something has to go for something new to replace it....
Example of Total Return Swap Assume two parties A and B enter into a one-year TRS contract, where A is the receiver and B is the payer. The underlying asset, in this case, is the Standard & Poor’s 500 Index, and the principal amount is $10 million. B’s payment will depend on ...
Let’s understand this with an example: Suppose Company A has a loan with an interest rate linked to the LIBOR (London Interbank Offered Rate), while Company B has a loan with an interest rate linked to the federal funds rate. These reference rates can differ due to various factors such ...
INTEREST-RATEswaps on financial debts: a company that has avariable-ratedebt, for example, may anticipate that interest rates will rise; another company withfixed-ratedebt may anticipate that interest rates will fall. It therefore contracts to make variable interest-rate payments to the first compa...
Memory management is one of the more complex parts of system troubleshooting, as it involves a certain degree of guesswork and estimation. Still, you can achieve good results by monitoring the tunables and adjusting them to match your scenario. This means being familiar with the meaning of availa...
Example of a Quanto Swap As a demonstrative example of a quanto swap, imagine a European company that borrows $1 million to fund operations in the United States, to be repaid over five years with interest based on the 3-month SOFR rate. In this example, the current SOFR is 5%, but t...
For example, a bank may swap a 3% debt obligation in exchange for a floating rate obligation of theLondon Interbank Offered Rate(LIBOR) plus 0.5%. LIBOR may currently be 2.5%, so the fixed and floating rates are the same right now. Over time, though, the floating rate may change. If ...