How does the spread swap compares the relative attractiveness of fixed and floating rate bonds?
Tks作者: IAmNeil 时间: 2011-7-11 19:58
never heard it作者: Darien 时间: 2011-7-11 19:58
I mean swap spread作者: jmh530 时间: 2011-7-11 19:58
I have the same question. "The swaps framework allows managers (as well as issuers) to more easily compare securities across fixed-rate and floating-rate markets." How?作者: infinitybenzo 时间: 2011-7-11 19:58
swap market is way more fluid,liquid,active than the bond markets which allows for relative comarison easier作者: Valores 时间: 2011-7-11 19:58
Swap spread of a corporate bond is its spread over the prevalent fixed rate on interest rate swaps of similar maturity. It is believed to be a good indicator of credit risk or even liquidity premium because it is market driven and easy to obtain and compare. It is more popular in the European markets but gaining popularity in the US as well.作者: Unforseen 时间: 2011-7-11 19:58
deriv108 Wrote:
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> I have the same question. "The swaps framework
> allows managers (as well as issuers) to more
> easily compare securities across fixed-rate and
> floating-rate markets." How?
This one came from Schweser Practice exam right? Should we just ignore Schweser altogether?作者: thommo77 时间: 2011-7-11 19:58
It's directly from the curriculum... thanks to hellscream, sniper and everyone.
Edited 1 time(s). Last edit at Saturday, May 28, 2011 at 09:01AM by deriv108.
