Leveraged Floater - hedge, arbitrage strategy trying, around, head, 2011

John10

trying to re-wrap my head around Leveraged Floater - hedge, arbitrage strategy from readin 43

When a semi-annual leveraged floater is sold, say at 2.5 times Libor, does it sell for a premium, above the par?



Edited 1 time(s). Last edit at Saturday, May 14, 2011 at 03:31PM by jbaphna.

cityboy

Haven't reviewed it...make sense, pay more to receive a 2.5xLIBOR payment.