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 EXPLAINS 'Swap Spread'
Similar to equity spreads, the swap spread adjusts for every contract and the different participating parties.
Traditionally, the exchange of one security for another to change ...
1. The difference between the bid and the ask price of a security ...
An individual who acts as the counterparty in a swap agreement ...
In an interest rate swap, the difference between the interest ...
A trading strategy in which an investor buys a long position ...
A standard agreement used in over-the-counter derivatives transactions.