Euro swap bid/offers edge to decade lows

Mifid II and extreme competition raise profitability concerns for euro rates market-makers

euro-currency-inflation-falling

Bid/offer spreads on many European rates products have more than halved since the start of 2017, bringing them to decade lows in some cases and hurting profitability for market-makers.

After rising at times in 2016 and 2017, spreads on European sovereign bonds and euro interest rate swaps have ground lower during the past two years. Some dealers blame the declines on the macro environment, increased competition, investors looking to meet best execution rules – or a combination of the three.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: