The swap market has evolved into a transactionally efficient market for accomplishing asset / liability objectives to alter the cash flow characteristics of assets (an asset swap) or liabilities (a liability swap).

Question

Quizplus · Accepted Answer

This statement is true, as the swap market allows for the exchange of cash flows between parties, which can be used to alter the cash flow characteristics of assets or liabilities. This allows for greater flexibility in managing financial risk and achieving investment objectives.

The Swap Market Has Evolved into a Transactionally Efficient Market