The procedure of selling out of a given bond position and immediately buying into another one with similar attributes in an attempt to improve overall portfolio return performance is referred to as:

Question

Quizplus · Accepted Answer

This is a classic definition of a bond swap. A hedge involves limiting risk exposure through the use of financial instruments. Bond arbitrage involves exploiting pricing differences between similar bonds in different markets. An unfriendly bond takeover is not a recognized financial term.

The Procedure of Selling Out of a Given Bond Position