Student 1: Hey have you tried Swap Shopping?!
Student 2: No, whats that?
Student 1: Its this cool website made so university students can swap things for other goods and services!
Student 2: Sounds awesome!
Student 1: Hell yeah it is!
Student 2: No, whats that?
Student 1: Its this cool website made so university students can swap things for other goods and services!
Student 2: Sounds awesome!
Student 1: Hell yeah it is!
by HeavyRain95 December 8, 2025
Get the Swap Shopping mug.(FINANCE) financial instrument in which buyer is someone who needs insurance against the possibility that a borrower will default on a loan. In that case, the counterparty is whoever receives the CDS premiums, and pays out in the event of default.
WHY IT'S BAD
Loans are usually made by either commercial banks (in which a loan officer is supposed to make a professional assessment of risk of default before handing over the money), or by investment banks (which underwrite securities like bonds). If the borrower has a high risk of default, then the loan should not be made--period.
Credit default swaps were a stupid method of supposedly turning a bad loan into a "risky" (and potentially high-yield) "investment"; they were in reality a strategy for fraud. Since portfolio managers knew they were bundling securitized loans that contained mostly crap, they would arrange credit default swaps and cash in when the borrowers defaulted.
WHY IT'S BAD
Loans are usually made by either commercial banks (in which a loan officer is supposed to make a professional assessment of risk of default before handing over the money), or by investment banks (which underwrite securities like bonds). If the borrower has a high risk of default, then the loan should not be made--period.
Credit default swaps were a stupid method of supposedly turning a bad loan into a "risky" (and potentially high-yield) "investment"; they were in reality a strategy for fraud. Since portfolio managers knew they were bundling securitized loans that contained mostly crap, they would arrange credit default swaps and cash in when the borrowers defaulted.
What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a "credit default swap," and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices.
{Newsweek, "The Monster That Ate Wall Street," 27 Sep 2008}
{Newsweek, "The Monster That Ate Wall Street," 27 Sep 2008}
by Abu Yahya July 17, 2010
Get the credit default swap mug.Related Words
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a strategy in algebra in which if x/y=z, then y and z can be quickly "swapped" so that x/z=y. Very helpful for quickly solving for a variable.
Named after Mr. Lynch, a Floridian calculus teacher.
Named after Mr. Lynch, a Floridian calculus teacher.
Student θ: Ugh... solving 3/x=4 for x is going to take me like a bajillion steps.
Mr. Lynch: lol just Lynch swap 4 and the denominator x.
Mr. Lynch: lol just Lynch swap 4 and the denominator x.
by peculiargoldfish October 3, 2019
Get the Lynch swap mug.by GravyBoiii December 20, 2021
Get the Gravy Swap mug.by UnicornFarmer12 September 2, 2019
Get the Plop Swap mug.Mens Tear Spit Swap is when two men are receiving separate blojobs whilst together. After both men ejaculate into their female companions mouths, the two women then French kiss and swap the spit’n cum, followed by a second blowjob.
Jake went on a double date with his girlfriend, Kaidyn, and his friend along with his date. Little did jake know that the girls were going to Mens Tear Spit Swap on him later that night - it only cost him a $54 Lobster Bisk.
by EggCombo December 28, 2017
Get the Mens Tear Spit Swap mug.The act of installing a chevrolet LS series V8 engine into a car, normally Mazda RX-7s and Ford Mustangs. Usually frowned on by internet "car guys", despite the fact they make lots of power and are cheap.
"Oh my God, an LS swap??? That's so unoriginal, you've ruined that RX-7! You've utterly destroyed the spirit of the car!!!" 12 year old, who doesn't own a car, on a forum.
by ItsNotABloodyCooper September 19, 2017
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