1
$\begingroup$

Swaps and bonds have a lot of similarity although one is a security and the other is a derivative. For example,

  1. libor for swaps is like repo rate bonds (thinking them both as the funding leg)
  2. fixed payment is like bond's coupon

I feel that there could be a systematic way to link or think about them under the same framework/logic. All the concepts in bonds must have a similar concepts in swaps and vice verse?

For example,

  1. what is for bonds as annuity for swaps ?
  2. what is for swaps as yield for bonds ?
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.