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How does the (interest rate) swap curve incorporate forward libor expectations?

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  • $\begingroup$ This question is not obvious $\endgroup$ – Permian Dec 4 '18 at 15:04
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Swap rate can be viewed as a weighted average of the forward rates. The forward rates would incorporate expectations of future rates, so should a swap rate then. Now a swap paying/receiving LIBOR against fixed rate is a weighted average of the forward LIBOR rates, and hence your statement.

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