Swap Spread


DEFINITION of 'Swap Spread'

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. The difference between the swap rate and the lending rate offered through other investment vehicles with comparable characteristics.


Similar to equity spreads, the swap spread adjusts for every contract and the different participating parties.

  1. Spread

    1. The difference between the bid and the ask price of a security ...
  2. Swap Dealer

    An individual who acts as the counterparty in a swap agreement ...
  3. Quality Spread Differential - QSD

    In an interest rate swap, the difference between the interest ...
  4. Swap

    Traditionally, the exchange of one security for another to change ...
  5. Credit Default Swap - CDS

    A particular type of swap designed to transfer the credit exposure ...
  6. Implied Volatility - IV

    The estimated volatility of a security's price.
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