tag:blogger.com,1999:blog-6616959642391988608.post6003079958886739039..comments2024-03-18T13:22:06.536-07:00Comments on Calafia Beach Pundit: Good news recap (5)Scott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6616959642391988608.post-21930353481583085762009-02-26T16:50:00.000-08:002009-02-26T16:50:00.000-08:00Swaps are agreements between two parties to exchan...Swaps are agreements between two parties to exchange cash flows. In a typical swap, A pays a fixed rate of interest to B, and B pays a floating rate (Libor) to A. A also needs to pay B a spread above the fixed rate to compensate him for the increased risk he takes on. <BR/><BR/>Swap spreads are thus an indicator of how willing people are to transact with each other, how much it costs to reduce Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20588518384844019002009-02-26T14:18:00.000-08:002009-02-26T14:18:00.000-08:00Hi Scott,What does the 2-year swap spread represen...Hi Scott,<BR/><BR/>What does the 2-year swap spread represent? Why is it so meaninful?<BR/><BR/>Thanks,<BR/><BR/>DavidDavidhttps://www.blogger.com/profile/11385983585327026358noreply@blogger.com