Swap Spread

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The difference between the swap interest rate and the underlying benchmark government bond yield at any given maturity. The swap spread is seen as a barometer of risk appetite, and represents the premium investors' exposure to future interest rate fluctuations. The narrower the spread the greater the appetite for risk.

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-	The difference between the swap [[Interest Rate\|interest rate]] and the underlying [[Benchmark\|benchmark]] government [[Bond\|bond]] [[Yield\|yield]] at any given [[Maturity\|maturity]]. The swap spread is seen as a barometer of [[Risk\|risk]] appetite, and represents the premium investors' [[Exposure\|exposure]] to future interest rate fluctuations. The narrower the spread ~~is,~~ the greater the appetite for risk.	+	The difference between the swap [[Interest Rate\|interest rate]] and the underlying [[Benchmark\|benchmark]] government [[Bond\|bond]] [[Yield\|yield]] at any given [[Maturity\|maturity]]. The swap spread is seen as a barometer of [[Risk\|risk]] appetite, and represents the premium investors' [[Exposure\|exposure]] to future interest rate fluctuations. The narrower the spread the greater the appetite for risk.