A bond exchange, in fixed income operations, is a transaction in which the holders of an existing bond hand it in and receive new bonds or other securities from the issuer in return. It is carried out through an exchange offer, which sets the ratio of new securities to old, any cash payment and a deadline for acceptance. The term can also mean a trading venue for bonds, which is not the sense used here.
Issuers use exchanges to extend maturities, change the coupon, or reduce the amount owed as part of a debt restructuring. For holders it is normally a voluntary corporate action: each decides whether to accept, although a vote at a bondholder meeting or a collective action clause can bind a dissenting minority. Related transactions are the bond tender and the bond repurchase, which pay cash.