EFTA Document EFTA01458978

8 December 2015 World Outlook 2016: Managing with less liquidity Back-end and swap spreads convergence The rationale outlined above would be consistent with a possible underperformance of the European back-end relative to the US. This macro assessment is supported by valuation arguments. Long-term valuation arguments which ignore flow effects such as OE suggest a significant richness of 5Y5Y rates in Europe relative to the US. Accounting for flows, the relative richness is less clear. Th