How Can Companies Use Swaps to Change the Risk of Securities

question 108

Essay

How can companies use swaps to change the risk of securities that they have issued?

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Definitions:

Virus-infected Cells

Cells that have been invaded by viruses, which hijack the cells' machinery to replicate and produce more viruses.

Active Artificial Immunity

Immunity acquired through the introduction of a vaccine containing a harmless form of a pathogen, prompting an immune response without causing the disease.

Immunization

Process by which a subject is rendered immune by deliberately introducing an antigen or antibody into the subject.

Hepatitis B

A serious liver infection caused by the hepatitis B virus that can become chronic and lead to liver cancer or cirrhosis.