Swap ((See Chapter 49 of the Vernimmen))

Swap is an exchange of financial assets or flows between two entities during a certain period of time. Major forms of swap contracts: currency swap without principal, interest rate swap, currency swap (with principal). Unlike financial assets, financial flows under swap contracts are traded over the counter, with no impact on the balance sheet and allow the parties to modify the exchange or interest rate terms (or both simultaneously) on current or future assets or liabilities. The market value of positions is normally indicated off the balance sheet.