Swap Spread

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Dictionary Says

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.
Investopedia Says

Investopedia explains 'Swap Spread'

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

'Swap Spread'

  • An In-Depth Look At The Swap Market

    http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp
    ... The payments, or premium, is based upon the default swap spread for the underlying
    security, also referred to as the default swap premium. ...

  • Setting Profit Traps With Butterfly Spreads

    http://www.investopedia.com/articles/optioninvestor/09/profit-out-of-the-money-butterfly.asp
    ... the possibilities. One such strategy is the out-of-the-money butterfly
    spread (heretofore referred to as the OTM butterfly). (To ...

  • Bank Failure: Will Your Assets Be Protected?

    http://www.investopedia.com/articles/stocks/08/sipc-fdic-bank-failure.asp
    ... one of the most obvious indicators of the relative safety of both banks and brokerages
    is what is known as the institution's credit default swap spread. ...

  • A Guide To Real Estate Derivatives

    http://www.investopedia.com/articles/optioninvestor/08/real-estate-derivative.asp
    ... The swap receiver pays LIBOR plus a spread to go into a one-year index swap with
    a $50 million dollar notional amount and would receive quarterly payments from ...

  • CFA Level 1 Study Guide - Derivatives - Swap Markets and Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/swap-markets-contracts.asp
    ... Purchasing Power Parity and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread
    Calculations; ... on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

  • How Bond Market Pricing Works

    http://www.investopedia.com/articles/bonds/07/pricing_conventions.asp
    ... Asset-Backed Securities: ABS frequently trade at a nominal yield spread
    at their weighted average life to the swap curve. Agencies ...

  • Get Positive Results With Negative Basis Trades

    http://www.investopedia.com/articles/trading/08/negative-basis-trades.asp
    ... means that the cash bond is the cheap asset and the credit default swap is the
    expensive asset (remember from above that the cheap asset has a greater spread). ...

  • Get Active In Your Bond Portfolio

    http://www.investopedia.com/articles/08/bonds/active-management-bond-portfolio.asp
    ... While the coupon spread is the obvious benefit, it is the ability to predict the ...
    Bond-Swap Strategies The key to a bond-swap strategy is to simultaneously sell ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Spread ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/spread.asp
    ... Purchasing Power Parity and Interest Rate Parity; 5.9 Foreign Exchange; 5.10 Spread
    Calculations; ... on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

  • 5 Equity Derivatives And How They Work

    http://www.investopedia.com/articles/optioninvestor/10/equity-derivatives.asp
    ... Investors can structure a swap to spread out capital gains over a predetermined
    number of years in return for paying interest at a fixed rate. ...

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