Zero Basis Risk Swap (ZEBRA) - Definition

An Interest Rate Swap between a municipality and a financial institution. The municipality is the fixed rate payer and the financial institution is the floating rate payer. The floating rate the financial institution pays (and that the municipality receives) is identical to the adjustable interest rate on a floating rate Note that the municipality previously issued. A ZEBRA makes a municipality's borrowing costs more predictable and therefore reduces its Risk. Also known as a "perfect swap" or "actual rate swap".



Terms near "Zero Basis Risk Swap (ZEBRA)"

Zero Bound
Zero Cost Collar
Zero Coupon
Zero Coupon Bond
Zero Coupon Inflation Swap
Zero lot line
Zero Minus Tick
Zero Plus Tick
Zero Prepayment Assumption
Zero-Based Budgeting (ZBB)
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