There are several reasons why an investor would want to
consider bond swapping or why a financial professional may advise it for a client, such as adding diversity to a portfolio, lowering taxes or taking advantage of anticipated interest rate changes.
Not exact matches
You may want to
consider swapping bonds if you're changing conditions within a specific industry or the overall market is causing issuers to offer higher coupon rates and lower prices for a similar
bond (same credit rating, par value, etc.) already in your portfolio.
To learn more about what
bond swapping may mean to you,
consider your objectives and discuss them your financial consultant.
But if you manage a portfolio of individual
bonds, one strategy you might want to
consider is the
bond swap.