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Puttable Swap
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A swap agreement in which the fixed rate receiver has the right to terminate the swap on one or more dates prior to its scheduled maturity. Like a callable swap, this early termination provision is designed to protect a party from adverse effects of large changes in fixed rates. In this case, the receiver would be protected from a large increase in rates which would reduce the present value of his cash flow from the swap. See also Callable Swap, Cancelable Swap, Retractable Swap.
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