Liquidity swap: Difference between revisions
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==See also== | ==See also== | ||
*[[Asset backed securities]] | *[[Asset backed securities]] (ABS) | ||
*[[Collateral swap]] | *[[Collateral swap]] | ||
*[[Liquidity]] | *[[Liquidity]] | ||
*[[Liquidity insurance]] | *[[Liquidity insurance]] | ||
*[[Liquidity transformation]] | |||
*[[Repo]] | *[[Repo]] | ||
*[[Securities Financing | *[[Securities Financing Transactions Regulation]] | ||
*[[Sterling Monetary Framework]] | *[[Sterling Monetary Framework]] | ||
*[[Stress]] | *[[Stress]] | ||
[[Category:Financial_products_and_markets]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 23:14, 4 February 2024
Liquidity swaps typically refer to transactions which effect a liquidity transformation between:
- an insurer (which has plenty of liquidity) and
- a bank (which is temporarily short of liquidity).
This is usually done by exchanging high-credit quality, liquid assets such as gilts held by the insurer, with illiquid or less liquid assets, such as asset-backed securities (ABS) held by the bank.
