Ovetii have recently reported that derivative markets are showing that it's cheaper to exchange fixed- for floating- interest-rate payments over a two-year period in the U.S. than in Europe for the first time since April 2004. According to sources at Ovetii, the rate on a U.S. two-year interest-rate swap, used by companies and investors to hedge against changes in interest rates, fell below its counterpart in Europe by 0.01 percentage points yesterday. The two-year U.S. swap rate was one percentage point more than those in Europe at the start of the year.
Ovetii -U.S. Interest-Rate Swap Rate below Europes Website
Ovetii have recently reported that derivative markets are showing that it's cheaper to exchange fixed- for floating- interest-rate payments over a two-year period in the U.S. than in Europe for the first time since April 2004. According to sources at Ovetii, the rate on a U.S. two-year interest-rate swap, used by companies and investors to hedge against changes in interest rates, fell below its counterpart in Europe by 0.01 percentage points yesterday. The two-year U.S. swap rate was one percentage point more than those in Europe at the start of the year.
added by financemaster on 2007-12-11 05:25:58