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Asset Swap Spread

Expresses bond richness or cheapness relative to the swap curve under an asset-swap structure.

Formula

ASW = fixed spread making bond + swap cash flows price at par

Variables: Bond cash flows; swap curve; par value

What it means

Expresses bond richness or cheapness relative to the swap curve under an asset-swap structure.

Example

Solve for the spread over the floating leg that makes the package equal par.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.