返回列表 发帖

Breakeven spread analysis

in vol.4, P.149 Q8, - spread between US and German bonds is 300bps, providing German investors who purchase a US bond with an additional yield income of 75 bps per quarter.  Duration of German bond is 8.3.  If German interest rates should decline, how much of a decline is required to wipe out the yield advantage?
US yield is higher than German yield, shouldn’t German yield (interest rate) increase to close the gap between the two bonds?

返回列表