Home Products MTS Tradition European Asset Swaps Service

MTS Tradition European Asset Swaps Service

A unique data service which consolidates MTS’ government bond data with Tradition’s EUR Interest Rate data to produce the related Asset Swaps.

Download Factsheet

Data packages available as part of the MTS Tradition European Asset Swaps data package:

2Y, 5Y, 10Y, 30Y

2Y – 10Y, 15Y, 20Y, 25Y, 30Y

SUMMARY

Whether you are looking to manage cash flow profiles or reduce interest rate risk, our MTS Tradition European Asset Swaps service is an important arsenal in your toolkit.

Trad-X – Tradition’s award-winning Interest Rate platform – and MTS – one of the leading European electronic fixed income platforms and data service providers – have partnered to create an innovative Asset Swap data service consolidating MTS’s French, German, Italian and Spanish Government bond data with Trad-X’s EUR Interest Rate Swaps pricing.

We publish accurate Yield/Yield and Par/Par Asset Swaps built from the two fully executable, dealer-to-dealer (D2D) regulated, real-time order books via our own data feeds, as well as through Refinitiv and Bloomberg.

By providing visibility into European asset swap spreads, we assist a broad cross-section of the buy and sell-side in the pricing of new issues, benchmarking of positions and the hedging of interest rate risk.

The MTS Tradition European Asset Swaps service benefits issuers of European debt, financial institutions such as insurers, investors and asset managers who want to manage their cash flow profiles and reduce interest rate risk.

Related products

Japanese Government Bonds

Key stats

Eurozone sovereign debt markets – France, Germany, Italy & Spain

Y –

tenors

million

price updates per day across MTS central limit order books

million

Trad-X updates per day

“Finding value for our customers is a key driver of the forward-looking nature of the data business we are building here at Tradition. This collaboration with two flagship EU trading platforms in the form of MTS and Trad-X brings a valuable, logical and unique source of key data for many European customers. Data is no longer just a by-product of trading; innovative data feeds and information have become the cornerstone of efficient execution and trading strategies.”

Scott Fitzpatrick, Global Head of TraditionData

BENEFITS

Key benefits:

Yield-Yield Asset Swap: The difference between yield on a bond and the swap rate (i.e. the interest rate applicable to the fixed leg in the floating-for-fixed interest rate swap). The difference between yield on a bond and a benchmark curve is useful in assessing credit risk of different bonds and sometimes known as a ‘matched-maturity asset swap’.

Par-Par Asset Swap: Indicates the combination of a fixed-rate bond and an interest rate swap (IRS), structured such that the total cost to the investor is par. The par asset swap spread is the value that sets the value of the package equal to zero at initiation.

Gadgets Included: Included within the service are ‘Gadgets’, which are the yield differential between the bond futures cheapest to deliver bond and corresponding swaps tenor.