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Joined: June 10th, 2009, 3:41 pm

New issuance swap

May 8th, 2020, 7:55 am

Hi Im wondering about the mechanics of a new issue swap for say an issuer who issues 1b of debt and wants to swap his fixed rate exposure to floating. In practice what fixed rate does the swap dealer use for the swap? And how does it compare to whats called reoffer yield (ie the rate thats called in the pricing call as Mid Swap + 100bps for example)