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Info not fearmongering. Swaps not Swiss. Dealers not Fed. The data and evidence are conclusive.

Eurodollar University

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Is There Any Arbitrage Opportunity in Negative Swaps?

When the swap rate, the fixed rate on the interest rate swap is less than the US treasury, there is an opportunity here to make gobs of free money. That's the arbitrage. You go along the US treasury to get paid the treasury coupon, which is higher than the fixed rate swap already. And what do you pay on the other side? You pay some kind of if it's not lie board, then some lie board equivalent and then pay the fixed rate swapped, which as I said, the market is pricing below treasury. It's a win-win-win on every side. So the question is, in a negative swaps-for-its situation, where is everybody

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