Re:Debt Market Distortions Go Global as Nothing Makes Sense ...
by carsongross on Monday November 16, 2015 @01:45PM
(#10576205)
vegabook comments below that swaps are much more like 24-hour loans than the underlying 10-year loans, so it makes sense that they should trade at a discount due to risk differentials.
I don't know the mechanics of swap settlement well enough to understand if that is correct, but it seems plausible.
I don't know the mechanics of swap settlement well enough to understand if that is correct, but it seems plausible.