# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Swap Spread

The difference between the swap rate, which is normally the interest rate on the fixed leg of an interest rate swap, 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 for investors' exposure to future interest rate fluctuations. The narrower the spread, the greater the appetite for risk.