B
   
   Back-to-Back Swap
   















 

B

Back-to-Back Swap

A swap agreement that reverses the cash flow pattern of a simple swap, modifying the net paying or receiving position of the back-to-back counterparties. Back-to-back swaps have been used to extend the effective maturity of an issuer's fixed rate debt or to enhance the credit of a financial intermediary's derivative products subsidiary.

Glossary * B