Need help decoding Q 9B
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anshuljainBeginner
Susan Winslow manages bond funds denominated in US Dollars, Euros, and British Pounds. Each fund invests in sovereign bonds and related derivatives. Each fund can invest a portion of its assets outside its base currency market with or without hedging ...
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Darshan BhandariBeginner
Very tough language given in the solution to a problem relating to carry trade in core. These were the 3 statements asking us to identify which statement is correct. Carry trades may or may not involve a maturity mismatch. Carry trades require ...
Although it’s a global portfolio but as we are talking about the expected return of the domestic bond so currency gains and losses should not be considered. Please explain.
sir in class , you mentioned that change in yield = X*Z*SD where X= current yield , Z = say 2.33 , if 1% VAR . BUT in above example , while calculating change in yield – they have only done Z*SD
AbboseBeginner
Hi sir, when you find time can you please discuss Qno. 23-25 of Reading 12 from the core?
Ajay AgarwalAdvanced
When we are holding the bond till maturity then we will submit the bond to the issuer company for redemption. We are not selling the bond at any point of time so we should not worry about the interest rate ...
Ajay AgarwalAdvanced
Please explain the selected portion of the question and option A and C of answer.
Varun TeotiaIntermediate
Solution to 1: The investor should initially buy protection on the CDX HY Index and sell protection on the CDX IG Index. Current CDS prices are estimated by multiplying EffSpreadDurCDS by the spread difference from the standard rates of 1% ...
does bullet portfolio contains only ZCB ? just getting little confused. and another doubt is – Greater the convexity, greater the dispersion which i understand . but ZCBs have highest convexity .(even they have 0 dispersion bcz cash flows are not dispersed at ...