Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
Why don't they give these things a name? Like what pathos is there in a number? It makes your life miserable remembering all of them - and frankly doesn't make our life any easier writing pithy epithets about them either. But here we go: A 1035 exchange is a swap. More specifically, it's a swap relating to life insurance annuities or policies. Ever read Pygmalion? That's the basic idea, insurance style - I swap my life insurance policy/ annuity / whatever - for yours. Tax free. Taxxxx freeeee (Insert Homer Simpson drool sound.)