Why do you think a 2 day term would be less attractive to traders? I thought that traders could just keep replacing one swap with another for as long as they wanted. One trader posted that he could keep a position open with 2 day swaps for as long as he wanted. He said that it was annoying but that he does it all the time. Could you tell me what I'm missing?
You are not missing anything, I was aiming at exactly the "convenience" factor, nothing more. If he says that it is "annoying" I assume that means it is less attractive to him. And as I wrote I don't really like this idea much anyway.