I am having a hard time understanding what "EDSF" (Eurodollar Synthetic Forward Curve) represents as a bond pricing benchmark. I have seen bonds quoted as spreads to EDSF with maturities < 2 years instead of treasury notes, and this seems to be a common convention in the ABS market.
Here is a footnote from a recent Wells Fargo consumer ABS report
EDSF used to price fixed-rate bonds with WAL < 2.0 years, swaps >= 2.0 years. Discount margin (DM) to price floating-rate bonds. Source: Wells Fargo Securities
Bloomberg has an EDSF function, but this just calculates implied forward rates given ED futures prices. What is the "EDSF" benchmark rate used for spreads? I assume it is some sort of I-spread but I am confused by the "forward" aspect as pricing is generally just against a spot yield. And do you have to apply a convexity adjustment (assuming no since that is model dependent)?
If someone can help me with the math here that would be helpful- I am trying to calculate the EDSF rate (or build a curve) so that bonds can be priced off of it.