.... 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.作者: Chuckrox 时间: 2011-7-11 19:23
good way to remember bearishness means rates rising is to think in terms of price since puts are quoted in currency, not yield作者: susana 时间: 2011-7-11 19:23
bearish mean interest rate rises
put ponds perform better when interest rate rises
simple ?
