I have the same question. "The swaps framework allows managers (as well as issuers) to more easily compare securities across fixed-rate and floating-rate markets." How?
Swap spread of a corporate bond is its spread over the prevalent fixed rate on interest rate swaps of similar maturity. It is believed to be a good indicator of credit risk or even liquidity premium because it is market driven and easy to obtain and compare. It is more popular in the European markets but gaining popularity in the US as well.
deriv108 Wrote:
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> I have the same question. "The swaps framework
> allows managers (as well as issuers) to more
> easily compare securities across fixed-rate and
> floating-rate markets." How?
This one came from Schweser Practice exam right? Should we just ignore Schweser altogether?
发表于 2011-7-11 19:58
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