New answers tagged bond-futures
3
votes
Intuition behind Conversion Factor, Bond Future
Imagine wanting to create a deliverable bond future tradable on an exchange.
We define which single bond is deliverable to it and use the forward price of the bond as the basis for the future. This ...
- 11.2k
3
votes
Accepted
Why pay repo to finance bond position instead of reverse repo?
This idea doesn’t work. If you do a reverse repo (invest cash vs borrowing the bond), you do not have exposure to the bond price. The bond is returned to the counterparty, regardless of what price ...
- 17.5k
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