In Hedgebook’s universe swap rates relate to the fixed rate of an interest rate swap. The interest rate swap market is very deep and liquid. Swaps are used by a large number of companies and banks to manage interest rate exposure. A swap rate can simply be viewed as the market’s expectation for floating rates over different terms. For example, a two year swap rate of 4% is the market’s expectation that floating rates will average 4% over the next two years.
How Hedgebook helps:
Hedgebook is used to record, report and value interest rate swaps.
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