The side that buys the bond and enters a swap paying the fixed rate is said to buy the asset swap. The side that sells the bond and enters a swap receiving the fixed rate is said to sell it. The type in which the bond is bought at par is a par asset swap.
Asset swap
- Japanese
- アセットスワップ
- Last reviewed
- October 22, 2026
An asset swap is a transaction that combines the purchase of a bond with an interest rate swap of the same maturity. It converts the bond's fixed rate into a floating rate while the buyer keeps the bond issuer's credit risk.