We’re rewarding the question askers & reputations are being recalculated! Read more.

Hot answers tagged


Reasons why the net basis might trade negative from time to time : 1) if a credit crisis occurs, investors do not have the resources to invest in the basis. For example , banks are unwilling or unable to provide repo financing. Or, investors do not have the cash required for the haircut on the repo financing. Hence the basis traded negative during the ...

Only top voted, non community-wiki answers of a minimum length are eligible