A financial contract or swap in which future agreements and future cash flows are agreed upon. The future arrangement gives both parties the opportunity to diversify their income while at the same time keeping a hold of their present assets. On top of that, these swaps give large institutions the opportunity to hedge some assets within their portfolios.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser