Whereas in the mid-1980s swap spreads might have been 50 basis points,a/an _______ basis-point spread is more common today.
A) 80
B) 60
C) 30
D) 10

Question

Quizplus · Accepted Answer

Swap spreads have generally narrowed over time due to increased efficiency in the swap markets, greater liquidity, and lower credit risk premiums. A 10 basis-point spread is indicative of these tighter conditions compared to the wider spreads of the past.

Whereas in the Mid-1980s Swap Spreads Might Have Been 50