External arbitrage is a type of arbitrage involving multinational US banks to take advantage of interest rate differentials between the US and other countries.
Qualitative Spread Differential (QSD) is the difference between the market interest rates achieved by the two parties entering into an interest rate swap.
Swap rate refers to the fixed rate that a party to a swap contract asks for in exchange for a commitment to pay a short-term rate, such as the labor or federal fund rate.
In a full yield swap, one party makes payments in accordance with a set rate, and the other party makes payments in accordance with the rate of the underlying or benchmark asset.