The use of the term swap-spreads in financial markets has grown progressively over time. Many economists have deconstructed swap spreads and their implications on the financial markets in order to make investment decisions within the global equity and fixed income markets. The utilization of swap spreads as a tool within the markets has grown substantially since 1994 due to the growing understanding of the interrelationship between financial themes<ref name=RefinRefini>https://doi.org/10.1007/s00181-020-01852-0 Kóbor, Shi, L., & Zelenko, I. (2005). What determines U.S. swap spreads? World Bank. “Market Voice: A Negative for Swap Spreads.” Refinitiv Perspectives, 5 Jan. 2021</ref>. A swap spread is the difference between the fixed component of a given swap and the yield of a debt security. In the US this correlation triggered the emergence of derivative products and contracts as investors looked to exchange fixed interest repayments on their securities for floating rate repayments. Swap spreads as a result emerged as a mechanism to price this transition from fixed to floating rate repayments.<ref name=Lando>Feldhütter, & Lando, D. (2008). Decomposing swap spreads. Journal of Financial Economics, 88(2), 375–405. https://doi.org/10.1016/j.jfineco.2007.07.004</ref>
