swap spread


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.

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I wondered what the swap spread was and it made me really upset because I didn't know what it was all about.

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You may want to try and see if you can find a good swap spread to make that will earn you some extra profit.

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Samantha looked at the swap spread and decided that the heightened risk that came with such an investment was not worth it given her meager portfolio.

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swap reversal swaption