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Swap spread - Financial definition

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Concise definition of the term swap spread

The swap spread is calculated as the difference between a government bond's yield and the fixed component of an interest rate swap of the same maturity. It represents the additional credit risk of the interbank market over the government debt market.

Additional information related to this definition

Definitions of related terms

Bond  •  Credit risk  •  Government bond  •  Interest rate swap   •  Yield

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