In[[Interest finance,rate '''swapswaps|Interest spread'''Rate isSwaps]] aare populartypically waycompared to indicateTreasury thesecurities [[creditof spreadcomparable (bond)|credit spreads]]maturity in aorder market.to Itcalculate isthe defined"swap asspread." Specifically, the swap spread paidequals bythe swap rate of the fixed-ratepayerleg ofminus anthe [[interestTreasury rate swap]]for overcomparable maturities. For example, if the current market rate offor thea [[On5-year swap is 1.35 percent and the runcurrent yield (finance)|on the run]]5-year [[UnitedTreasury Statesnote Treasuryis security|treasury]]1.33 withpercent, the same5-year maturityswap asspread thewould swapbe 2 basis points.<ref>{{Cite web|url=httpshttp://pdfsfaculty.semanticscholarmccombs.orgutexas.edu/5106keith.brown/338efd61d92691eeb0cf07431fbf0ef26381Research/JFI-03.94.pdf|title=www.semanticscholar.organ empirical analysis of interest rate swap spreads|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}</ref><ref>{{Cite For example, if the fixedweb|url=https://www.treasury.gov/connect/blog/Pages/Examining-rate of a fiveSwap-year fixedSpreads-and-the-Implications-for-floatFunding-the-Government.aspx|title=Examining [[LIBOR]]Swap swap is 7.26%Spreads and the five-yearImplications Treasuryfor is yielding at 6.43%,Funding the swap spread is 7Government|website=www.26% − 6treasury.43% gov|language= 83 [[basis pointen-us|bps]].access-date=2017-03-27}}</ref>
Often, fixed income prices will be quoted in "SWAPS +", wherein the swap rate is added to a given number of basis points. The swap rate there is simply the yield on an equal-maturity Treasury plus the swap spread.
