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I have a corporate bond xy that I would like to price looking at comparable bonds,

How do I identify comparables and what matrics should I look at to price my own xy bond? Should i just simply take the ytm of comparables and use it to price my own bond,or what process to follow?

I have access to bbg terminal, it may be or not be bval priced, but I don't want to use the bval price, but I could use the terminal to look at the comparables.

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You can look at the same type of bonds with same rating, same sector, similar tenor and if possible same country, and pay attention on optionalities writen, extract discount margin and apply on your bond.

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  • $\begingroup$ Does the currency matter? E.g. would you expect USD- and EUR- fixed-coupon bonds sharing the characteristics that you listed to have similar yields? $\endgroup$ Commented Dec 14, 2023 at 13:56
  • $\begingroup$ @DimitriVulis definitely, currency is another factor to count in. $\endgroup$
    – darkuss
    Commented Dec 14, 2023 at 15:23
  • $\begingroup$ Why discount margin and not ytm? $\endgroup$
    – Skittles
    Commented Dec 15, 2023 at 7:24

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