just how a portfolio is handled. Bonds are bought and sold as well. The 3 types are maturity swap, quality swap, and produce sap. reference swap.
Portfolio management technique which bonds tend to be purchased and offered at the same time (to profit from changes in their particular market price) by swapping one kind of bond with another. Three primary kinds of swap are (1) Maturity swap: exchanging long-term bonds with short term people, and the other way around. (2) high quality swap: swapping highly-rated bonds with low-rated people, and the other way around. (3) Yield swap: swapping deep-discount bonds with high-interest bonds, and vice versa. See also swap.