The difference between the swap rate on a contract and the yield on a government bond of the same maturity. It is used to represent the risk associated with the investment, since changes in interest rates will ultimately affect return. Swap spreads are based on LIBOR rates, the creditworthiness of the swap's parties, and other economic factors that could influence the terms of the investment's interest rates.
Related information about swap spread:
- Swap spread - Wikipedia, the free encyclopedia
In finance, swap spread is a popular way to indicate the credit spreads in a market. It is defined as the spread paid by the fixed-rate payer of an interest rate swap ...
- Swap Spread Definition | Investopedia
1. The difference between the negotiated and fixed rate of a swap. The spread is determined by characteristics of market supply and creditor worthiness. 2.
- swap spreads - TheStreet
A swap spread is the difference between the fixed interest rate and the yield of the Treasury security of the same maturity as the term of the swap. For example, if ...
- 10-year swap spread turns negative « self-evident
Mar 23, 2010 ... The 10-year swap spread finally inverted. The swap spread is the difference between the 10-year Treasury and the swap rate, which is the fixed ...
- Why is the 30 Year Swap Spread to Treasuries Negative?
Feb 7, 2012 ... Since interest rate swaps became common in the 1980s, the conventional wisdom has been that the interest rate swap spread over Treasuries ...
- U.S. Rate-Swap Spread Plummets to 19-Year Low; Markit CDX Falls ...
Oct 16, 2012 ... A measure of stress in U.S. credit markets reached the lowest level in 19 years as economic data and company earnings surpassed estimates.
- Swap Spread Definition & Example | InvestingAnswers
We explain the definition of Swap Spread, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- US 7-year swap spread turns negative | FT Alphaville
Mar 30, 2010 ... FT Alphaville has written about the (new) negative territory being experienced in US government swap spreads - the 10-year government swap, ...