Intermarket Spread Swap
A swap transaction meant to capitalize on a yield discrepancy between bond market sectors. Investopedia Says:
Opportunities for intermarket spread swaps exist when there are credit quality or feature differences between bonds.
For example, if there is a wide credit spread between high credit quality corporate and treasury bonds, and the spread is expected to narrow, investors would swap government securities for corporate securities. Related Terms:
Bond Swap
Credit Rating
Credit Spread
Intermarket Sector Spread
Sector
Swap
Workout Period
Yield |