He&#x27;s saying that if the investor wants a Treasury, the only way you can sell that to him is with a Treasury. If he&#x27;s open to a swap, you can sell (write) that contract to him and hedge it with either a Treasury or another swap.<p>The only way to deliver a Treasury is with a Treasury, which you have to track down out of inventory or from another dealer. You can write a swap without having to go through that ordeal. This means lower transaction costs.