Long-end euro swap pricing anomaly remains largely untapped

Deviation in swap curve attracts limited interest because of regulatory and pension reform barriers

A pricing anomaly at the long end of the euro swap curve persists a year after it first appeared, but a range of factors mean most investors have been unable or unwilling to take up the resulting opportunities.

Interest rate swaps linked to the risk-free euro short-term rate (€STR) would, under normal circumstances, have lower fixed rates than swaps linked to Euribor because of the credit risk