credit curve analysis - putables security, interest, structure, only

bchadwick

.... The structure of putable should be favored as an outperformance vehicle only by those investors with a decidely bearish outlook for interest rates.

why???
if interest rates go down, i wont put the security, but at the same time the yield i get from the security is not very good because of the put in it.

susana

bearish mean interest rate rises
put ponds perform better when interest rate rises
simple ?

Chuckrox

good way to remember bearishness means rates rising is to think in terms of price since puts are quoted in currency, not yield