"Except as provided in subparagraph (B), the term 'swap' means any agreement, contract, or transaction—
What is swap spread?
Swap spread: Interest rate paid by fixed-rate payer – Interest rate on the run treasury (with same maturity).
What is an example of a swap?
• Usually, one of the parties is a Swap Dealer, also called Swap Bank(a large bank). RS: IF-V-4 3 Example: Interest Rate Swap (inception date: April) Bank A (fixed-rate payer) buys an 8% swap Notional: USD 100 M Swap coupon (Fixed-rate): 8% (s.a.).
