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bhans2 Wrote:
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> It is kind of counter-intuitive, going long a
> Eurodollar future gives you the right to lend USD
> at X and going short allows you to borrow USD at
> X. So as interest rates rise (eurodollars are
> based on libor) the short makes money and offsets
> the money you lose on having to pay more interest
> on the floating rate bond.

Good explanation. Thanks