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A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields is higher than its historical average. This is an example of ________ swap.
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A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields is higher than its historical average. This is an example of ________ swap.

User Emzaw
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Answer: The correct answer is "an intermarket spread".

Explanation: This is an example of an intermarket spread swap.

  • An intermarket spread swap, is the exchange of 2 bonds within different parts of the same market in order to obtain a higher yield.
User Bangalore
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