This could be a trivial question, but would I like to clear the concepts.
Our firm started sourcing the Murex Trades which has all the variety of Derivative products. I noticed that the Curve Assignment service has two types being Used:
- Discount Curve
- Forward Curve
I noticed that both curves are mapped to most of the products. Can you please confirm the following:
- In general whats the criteria for selection of the type of curve?
- Does it generally differs for Short Term maturing Products and Long Term maturing products?
- Do we need to consider both curves for Credit Risk purpose?
Thanks in advance