A strategy in which an investor sells a bond and at the same time purchases a different bond with the proceeds from the sale.
Investopedia Says:
There are several reasons why people use a bond swap: to seek tax benefits, to change investment objectives, to upgrade a portfolio's credit quality or to speculate on the performance of a particular bond.
Related Links:
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. Advanced Bond Concepts
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy. Corporate Bonds: An Introduction To Credit Risk




