As shown in the chart, the yield differential between ten-year swap yields and the yield on U.S. government agency bonds has narrowed to zero.
In April 2000, the difference between ten-year swap yields and the ten-year Treasury yield spiked up to a record 1.46 percentage points, as trading virtually shut down.
In 2000 the big automakers' debt widened by nearly 100 basis points (a full percentage point) against interest-rate swap yields, the global credit benchmark.
Then, iteratively, each node explores its local graph neighborhood, leaves its current cluster and joins the best neighbor cluster, if such a swap yields an increase in modularity.
Swap spreads widened in 2000, as the Treasury yield curve inverted while the swaps yield curve stayed positive.
Across Europe the swaps yield curve has replaced government-bond yields as the benchmark against which all Eurozone corporate issues are priced.
If we allow only swaps that yield the largest fitness increase, then, we find the closest peak (we define a peak as a state from which no codon swaps yield fitness increase) and the tallest peak (because, under the given algorithm only one peak can be reached from any starting point) for this algorithm.
The FDR increased when as little as five SGLs were replaced by DGLs and continued to increase with additional swaps (10, 15, 20 and 25 swaps) such that datasets containing about equal numbers of SGLs and DGLs (25 swaps) yielded the highest FDR.
Consequently, for larger data matrices, reduced search effort (but not as much reduced as using no or less efficient branch swapping) yields rather slightly overestimated support compared to the support found with higher effort.
Because they gauged credit spreads against swap (interbank) yields, swaps became the credit market's new benchmark.
