comparative-advantage

  1. Nicole Seaman

    YouTube T3-31: Comparative advantage in an interest rate swap

    AAACorp has a comparative advantage in fixed-rate markets, but BBBCorp has a comparative advantage in floating-rate markets (even as it pays more everwhere!). The difference in spreads (in this case, the difference is 0.50% = 1.20% - 0.70%) is the gross total advantage that can be conferred...
Top