标题: Difference between nominal and Z spread? [打印本页] 作者: pogo 时间: 2013-5-7 05:23 标题: Difference between nominal and Z spread?
Can someone shed some light on this question? Thanks in advance.作者: canadiananalyst 时间: 2013-5-7 05:30
Another way to say would be: Nominal is on the yield curve (curve of YTMs) and Z spread is on spot curve(curve of spot rates).作者: NakedPuts 时间: 2013-5-7 05:34
So in what situation is it appropriate to use the nominal spread vs. z spread? Thanks again.作者: strikethree 时间: 2013-5-7 05:38
use nominal only if they tell you that yield curve is flat.. that is the spread will remain the same until maturity作者: Analyze_This 时间: 2013-5-7 05:41
z spread in the other cases if you don’t have an option on the bond作者: chandsingh 时间: 2013-5-7 05:45
Of course is the yield curve is flat the nominal spread should equal the Z spread.
But as florin said, only use nominal if you are told to do so. Nominal is a inferior spread.作者: tobeornottobe 时间: 2013-5-7 05:53
