When two banks simply agree to exchange a portion of their customers' loan repayments,they are using:

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When two banks agree to exchange a portion of their customers’ loan repayments, they are using a credit swap. A credit swap is a financial contract in which two parties agree to exchange the credit risk of one another. It is typically used to transfer the risk of default on a loan or bond from one party to another. In this case, the banks are exchanging the credit risk associated with their loans.

When Two Banks Simply Agree to Exchange a Portion of Their