What is the primary characteristic of a sweep versus a two-way sweep?

The primary characteristic of a sweep compared to a two-way sweep lies in their functionality regarding fund movement. A standard sweep is designed to move funds into a target account up to a predetermined balance, but it does not involve moving funds back once they reach that target. In contrast, a two-way sweep actively manages funds by transferring them back and forth between accounts. This process ensures that not only are excess funds swept into a designated account when they exceed a certain level, but it also allows for replenishment of those funds when necessary to meet operational needs.

The distinction emphasizes that a two-way sweep continuously balances the available funds between the accounts based on changing needs, while a one-way sweep focuses only on the outflow of excess funds to maintain a specific balance without reintroducing funds into the original account. This makes the two-way sweep more dynamic and responsive to account fluctuations.