Question: The spread (difference) between the swap rate and the yield on Treasury securities usually shows a premium in favour of the swap rate. In the

The spread (difference) between the swap rate and the yield on Treasury securities usually shows a premium in favour of the swap rate. In the USA, this relationship became inverted during 2015 and remained that way until the end of 2017. Explain how demand for interest rate swaps in a low interest rate environment might explain this behaviour. (LO 21.5)

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